A new data report from Realtor.com has determined that homebuyers who identify as LGBTQ and BIPOC (Black, Indigenous and people of color) are going into homeownership with greater housing costs burdens than White and non-LGBTQ individuals.
According to Realtor.com, LGBTQ+ and BIPOC buyers are more likely to put smaller down payments on a home, with nearly two-thirds (65%) putting down 20% or less of a home’s purchase price when buying compared to about half (53%) of White, non-LGBTQ+ buyers. Furthermore, LGBTQ and BIPOC buyers were also nearly 9% more likely to pay over a home’s asking price to get their offer accepted – 86% paid over asking, compared to 79% of White and non-LGBTQ individuals.
The combination of a smaller down payment and an above-asking home price generally equates to a higher interest rate and monthly mortgage payment. As a result, Realtor.com noted, LGBTQ and BIPOC buyers are likely to pay a larger share of their income toward housing than other buyers – which creates a greater obstacle to homeownership because a higher percentage of LGBTQ and BIPOC homebuyers were also more likely to fall into lower income groups than White and non-LGBTQ buyers.
Realtor.com also found that LGBTQ+ and BIPOC buyers are 1.7 times more likely to have been denied mortgages two or more times.
“More Americans than ever before are stretched thin because of the growing housing cost burden, but our data shows that LGBTQ and BIPOC buyers are potentially spending even more of their income to own a home of their own, which can make it difficult to afford other essentials like food and transportation and creates even greater inequalities,” said Laura Eddy, Realtor.com vice president for research and insights. “With the rising costs of homeownership taking a greater toll on budgets, resources like down payment assistance can help reduce the overall financial burden of buying a home and make it more accessible to a wider range of individuals.”
“At Realtor.com, we believe the dream of homeownership should be achievable by all, but inequality and a history of discriminatory housing policies have made it harder for BIPOC and LGBTQ individuals to overcome housing hurdles, and since housing is a predominant way to build wealth, that’s led to a significant wealth gap across generations,” said Mickey Neuberger, chief marketing officer at Realtor.com. “Reducing unfair housing cost burdens and giving greater access to communities who have been locked out of homeownership opportunities can help address that gap, and it’s why we’re joining forces with others in the industry and bringing new tools and resources to more individuals to help lift their financial strain.”
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Sex preference/skin tone are not known qualifications for a loan application.
In real world experience, I have found the direct opposite of your LBG but who cares? No one.
Houses are not financed based on your sex partner, skin tone, etc. This is not on any loan application.
These articles degrade people and are not based on real world data or reality. How does realtor .com source this data? Where are they receiving the data from? List the details of when, where and how long this data was collected by realtor .com.
All people qualify just like their neighbors, by being responsible adults with good credit, working hard, and saving money!
Write articles that site facts and are beneficial. List the real data, the income bracket and the outrageous cost of homes that all people encounter when buying or selling property.
The cost of homes do not discriminate on a persons qualified income bracket.
These articles of identity politics are degrading, divisive and give optics that ownership of property depends on your identity politics than your qualifications on a loan application.
The industry should not be running articles on people groups. It should be on loan qualification and real world data.
List the actual facts! List income brackets and average cost of property in this insane market.
All manner of people have been impacted by this market. Let’s see an article of actual real data. Follow inflation and economy statistics. Work harder on real estate numbers than identity politics.
Thank you for making those points. I completely agree! This type of study/research is intended to foment more divisiveness among Americans!
I agree with Minda Sportsman, that article is offensive and should be considered as 100% false. No Realtor® or lender checks to see what color or sexual preference their clients are! These type of articles are designed to drive a wedge between Americans to further divide people and quite frankly it’s racist to white people.
This article was not researched using actual statistics, it was clearly made up for some kind of perversion of our noble business.
Nice hatchet job there Phil Hall.
Wow?! Thanks for the article which I believe articulates well many issues facing those who are non-white and in the lower economic levels of our communities.
Really do not understand the negative response? It’s really hard to ignore US past attempts to put down any non-white person to get ahead.
BTW. I am white, Anglo-Saxon of European descent. Have no idea why you think article is offensive?