Middle class households of all backgrounds are continuing to be priced out, but black and Latino families are being hit the hardest.
Redfin reports that last year, only 18 percent of homes in the 30 largest metros were affordable for those earning the median income for Hispanic households, and 14 percent were affordable for families earning the median income for African-American households. Each rate dropped 11 percentage points from 2012. For comparison, 30 percent of homes were available for median income white households (down 12 percentage points from 2012).
Denver, Los Angeles, Portland, San Francisco, San Diego, and Phoenix were found to be the least affordable markets for middle class black and Hispanic households, as less than 5 percent of homes in those cities can be purchased by a median income family.
For African-American and Hispanic families, declining affordability has been especially dire because of historically lower levels of homeownership for these two groups. Homeownership among African Americans and Hispanics has not gained any ground since its peak just prior to the housing bust in 2004.
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