African Americans, Hispanic Americans, and Asian Americans have increasingly been purchasing homes across the country, leading to record homeownership rates for the three demographic groups, according to new study.
In the Snapshot of Race and Home Buying in America, published by the National Association of Realtors, it is noted that 44.1% of African Americans in the country as of the end of 2022 owned a home.
Hispanic Americans, meanwhile, saw a home ownership rate of 51.1%. But the numbers were strongest among Asian Americans, with an unprecedented 63.3% ownership rate.
According to a press release issued by the NAR, overall homeownership rates for everyone have shown a marked increase from 63.9% in 2012 to 65.2% in 2022. But the upward trend, notes the NAR, was interrupted by a decline in the year 2021, “influenced mostly by challenging housing affordability and inventory conditions.”
While the homeownership numbers for people of color is worthy of celebration, said Jessica Lautz, NAR vice president of research, “the pathway into homeownership remains arduous for minority buyers.”
Added Lautz, in a statement: “The impacts of housing affordability and limited inventory are more extreme for minority buyers, because more than half are first-time buyers who must rely on down payment sources beyond gained housing equity.”
Says the NAR report: “Given the substantial role homeownership plays in wealth creation, the disparities in homeownership rates are a matter of significant concern.”
Overall, whites continue to comprise the greatest number of homeowners nationally, increasing from 69.2% in 2012 to 72.3% a decade later. The Asian numbers grew from 57.2% to 63.3%, with Hispanic ownership seeing an increase at roughly the same rate, from 45.7% to 51.1%.
While black homeownership has been lower at 44.1% in 2022, the rate has nonetheless improved from around 41% in 2016.
South Carolina and Hawaii had the highest Asian homeownership rates at 74%, with the lowest rates at 28% in North Dakota. Hispanic homeownership rates were the highest in New Mexico at 71%, and lowest in New York at 28%.
African American homeownership rates were strongest in Mississippi at 57%, and lowest in both North Dakota and Wyoming at 19%.
White homeownership rates ranged from 83% in Delaware to a low of 59% in Hawaii.
The price range that would-be homeowners can afford was also distinguished by their demographic group, with whites comfortable in a $120,000 to $427,000 range, and Asians placing in the $49,000 to $413,000 range.
Hispanic Americans tended to purchase in the $125,000 to $352,000 range; while African American home purchase ranges ran from $74,000 to $269,000.
By Garry Boulard
