The US Homeownership Rate Is Increasing, but Along With It, a Racial Gap Is Widening
The homeownership rate has gradually increased over the last decade, but according to a recent report from the National Association of Realtors, people of color still face the most significant homebuying challenges during and after their home purchase. From 2011 to 2021, the Black homeownership rate increased by less than half of 1 percentage point, rising from 43.6% to 44%. By comparison, the White American homeownership rate grew by nearly 3 percentage points over the last decade and has remained around 70% since 2017.
During the same period, Asian Americans experienced a 5 percentage point gain in homeownership, reaching an all-time high rate of 62.8%, and Hispanic Americans also saw a 4 percentage point increase.
“Unfortunately, the incredible affordability challenges of the last year have hit minority home buyers more than White buyers,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Black buyers are more likely to be first-time buyers, who are more sensitive to changes in mortgage interest rates, while White buyers are more likely to have housing equity to rely on as they make a housing trade.”