For many households, becoming a homeowner is key to gaining financial stability, but not all groups have the same level of access to homeownership. Purchasing a home remains a challenge for many minority households, with the gap between white and minority homeownership rates remaining at over 20% for the past two decades, according to Construction Coverage. While the gap briefly narrowed during the early 2000s housing bubble, it widened after the 2008 financial crisis, ultimately having a disproportionate effect on minority communities. Although the overall gap has recently fallen below 22%, this is not the case for all groups. Among minority groups, Asian and Pacific Islanders have the highest homeownership rate at 63.3%, followed by American Indian and Alaskan Natives at 57.2%. Hispanic and Black Americans have the lowest homeownership rates at 51% and 45%, respectively.
The minority homeownership gap varies across the U.S. due to the demographic makeup of various regions, housing costs, and more. The homeownership gap between minority groups and white households is the largest in the Midwest and the Northeast, with North Dakota and New York reporting the largest gap at 36.8% and 30.2%, respectively. These states are followed by Rhode Island, Connecticut, and New Jersey, with homeownership gaps of 29.5%, 29.4%, and 29.1%, respectively.
Conversely, Hawaii remains the only state in which the minority homeownership rate actually exceeds that of White residents. More than 63% of minority households own their homes in Hawaii, compared to approximately 57% of White households. Read more