Homeownership rates for Asian Americans and Hispanics reached historic peaks in the latest data report published by the National Association of Realtors (NAR). And while Black Americans saw a slight uptick in their homeownership rate, their presence was still much lower than the rates for other racial and ethnic groups.
NAR’s newly published 2024 Snapshot of Race and Home Buying in America plumbed the organization’s 2023 Profile of Home Buyers and Sellers data, which covered homeownership trends during 2022, when the U.S. homeownership rate was 65.2%. Despite fast-rising mortgage rates that year, homeownership rates for Asian Americans reached 63.3% and Hispanics recorded a 51.1%, both all-time highs. The Black homeownership rate experienced a modest uptick to 44.1%, but trailed the rates for remains substantially lower than Asian, Hispanic and White (72.3%) Americans.
In the period between 2012 and 2022, the homeownership gap between Black and White Americans has widened from 27% to 28%.
Among all home buyers, White Americans made up the largest share (81%), followed by Hispanic Americans (7%), Black Americans (7%), Asian Americans (6%) and other (6%). Also, 55% of Asian and 51% of Black and Hispanic buyers were first-time home buyers.
“Minority homeownership gained ground this year, with Asian and Hispanic homeownership hitting record highs,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers. The impacts of housing affordability and limited inventory are more extreme for minority buyers, because more than half are first-time buyers who must rely on down payment sources beyond gained housing equity.”
Lautz added, “Potential buyers of color have a harder time saving for a down payment on a home, because they are paying more of their monthly income toward rent. Even among successful home buyers, minorities have a higher amount of student debt – the biggest expense that holds back saving, along with rent. Once they are ready to buy, Hispanic and Black Americans have a higher rate of loan denials in the mortgage market.”
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