CNN
While homeownership rates among all minority groups have increased recently, Black homeownership still lags the furthest behind the White homeownership rate, according to a new report from the National Association of Realtors® using data from 2022, the most recent American Community Survey from the US Census Bureau.
The Black homeownership rate saw a modest annual uptick to 44.1% in 2022 from 44% in 2021, but remains significantly behind the White homeownership rate of 72%, the report found.
Even with some improvement in the Black homeownership rate, the change has done little to close the yawning gap between Black and White homeownership. Over the past decade, the gap between the two groups’ homeownership rates has worsened, expanding from 27 points to 28 points.
Meanwhile, homeownership rates for other minority groups have substantially increased.
The Asian homeownership rate reached a record high of 63% in 2022. The Hispanic homeownership rate of 51.1% was also a record high for that group.
“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, in a statement. “While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers.”
Over the past decade, the US homeownership rate has increased, with the US gaining an estimated 10.5 million homeowners, according to NAR.
But, for the first time since 2015, the total homeownership rate actually decreased between 2021 and 2022. That is largely due to the most unaffordable housing market in a generation putting homeownership out of reach for many Americans, especially minority homebuyers.
“The impacts of housing affordability and limited inventory are more extreme for minority buyers,” explained Lautz. She said more than half are first-time buyers who must come up with a down payment and don’t have the sale of an existing home to rely on.
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