Racial and Ethnic Disparity in Homeownership Continues Even Among Highly Educated (2024)

FAQs

What is the homeownership rate by race and ethnicity? ›

The homeownership rate for White Americans in 2021 was 72.7%, but the rate for Black Americans was 44%, according to NAR's analysis of the most recent data. The homeownership rate for Asian Americans was 62.8% and for Hispanic Americans it was 50.6%.

According to Center tabulations of the American Community Survey, fully 71.7 percent of white households owned their homes in the US in 2015–2019 compared to 47.0 percent of households of color, representing a 24.6 percentage point racial homeownership gap.

On average, it allows families to build wealth and serves as a measure of financial security. Homeownership rates in a variety of countries peak for households in their 60s, suggesting that owning a home helps reduce financial risk in retirement.

Historical discrimination through exclusionary housing policies and practices, plus a dwindling supply of housing and a variety of other factors have limited Black families from purchasing homes at the same rate as their White counterparts.

○ Gen Xers continue to be the most racially diverse group of buyers in 2021. Twenty-three percent of this group of buyers identified as Hispanic / Latino, Black / African American, or Asian / Pacific Islander.

Homeownership rates show that Black Americans are currently the least likely group to own homes. In 2019, the US homeownership rate was 64.6%. Among Black Americans, it was 42.1%.

Housing inequality is a disparity in the quality of housing in a society which is a form of economic inequality. The right to housing is recognized by many national constitutions, and the lack of adequate housing can have adverse consequences for an individual or a family.

Owning a home opens the door to investments, buying power, and improving credit, and allows families to pass that wealth on to their children who then continue to pass it on through the generations.

“ Owning a home is that feeling of accomplishment you have earned ownership. Not every person is able to own his or her home. Homeownership is a reward once you have strived to maintain job history and good credit standing. Like many things in life, you set a goal and can feel that you have succeeded.

What does home ownership represent? ›

The Importance of Homeownership

For many people, owning a home represents the stability, independence and freedom of reaching adulthood.

Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about – success, freedom, and a sense of prosperity – are universal. That's why, for many people, homeownership remains a key part of the American dream.

'” Charleston and Columbia were the top city-level markets for African-American homeowners in the U.S. – 58 and 55 percent, respectively. Greenville's rate of 48 percent Black homeownership in 2021 was the most improved in the state since 2016, up by nearly 10 percent.

South Carolina was the top state for Black homeownership at 52.5%, followed by Maryland at 51.7% and Mississippi at 51%. The worst state was North Dakota at 5.2%, Wyoming at 17.5% and Montana at 19.7%.

Top Home Ownership Statistics In America: 65.8% of Americans own a home as of 2022. Some 74 million Americans, or about 27%, live in a condo or HOA property. 58.4 percent of the housing units were owner-occupied.

Key Takeaways. Millennials are not buying homes as readily as the previous generation. Delaying marriage and having children is keeping many Millennials at home with their parents. Tighter lending criteria can also make homeownership unaffordable or virtually impossible for those without much credit history.

Gen Z is the most racially and ethnically diverse generation in U.S. history, with 48% of Gen Z being nonwhite, according to Pew Research Center.

Millennials have made up the largest share of home purchase mortgage applications for the last six years.

By race, the highest national poverty rates were for American Indians and Alaska Natives (27.0 percent) and Blacks or African Americans (25.8 percent). Native Hawaiians and Other Pacific Islanders had a national poverty rate of 17.6 percent.

These include: White, Mixed/Multiple ethnic groups, Indian, Pakistani, Bangladeshi, Chinese, Any other Asian background, Black/African/Caribbean/Black British, and Other ethnic groups.

Which race or ethnicity has the highest poverty rate? ›

While the poverty rate for the population as a whole is 11.6% the rate varies greatly by race. Blacks have the highest poverty rate at 19.5% and Non-Hispanic whites have the lowest at 8.1%. The Poverty rate for Blacks and Hispanics is more than double that of non-Hispanic Whites.

Despite job losses from the COVID-19 pandemic, record low housing inventory, and a restrictive credit environment, Latinos increased their homeownership rate for the sixth consecutive year.

Homeownership. The benefits from homeownership have not been shared equally. In the second quarter of 2022, the homeownership rate for white households was 75 percent compared to 45 percent for Black households, 48 percent for Hispanic households, and 57 percent for non-Hispanic households of any other race.

Many factors contribute to health disparities, including genetics, access to care, poor quality of care, community features (e.g., inadequate access to healthy foods, poverty, limited personal support systems and violence), environmental conditions (e.g., poor air quality), language barriers and health behaviors.

For example, disparities occur across socioeconomic status, age, geography, language, gender, disability status, citizenship status, and sexual identity and orientation. Research also suggests that disparities occur across the life course, from birth, through mid-life, and among older adults.

The absolute disparity is a reflection of the difference between the groups of the entire population. Whereas the relative disparity tells us about the relative disparity across all groups in the population, taking into account the size of each group.

Educational achievement; Civic participation; • Health benefits; • Crime; • Public assistance; and • Property maintenance and improvement. In general, research supports the view that homeownership brings substantial social benefits.

What are the benefits and disadvantages of owning a home? ›

You build equity in two ways: by paying down your mortgage over time and through your home's appreciation.

Nearly 75% of Americans say that owning a home is a more significant measure of achievement than having a successful career or even raising a family, according to a survey from Bankrate.com of about 2,500 adults.

Homeownership has long been accepted as a core component of the American dream, as it confers several economic benefits on homeowners, including the ability to accumulate wealth by accessing credit, building equity and reducing housing costs.

Homeowner rates by race and ethnicity

Homeownership statistics by race show that the highest rates of homeownership are held by White households. Although homeownership rates for both Asian and Hispanic homeowners are above or around 50%, respectively, the rate for Black homeownership remains lower at just above 43%.

History: View Park–Windsor Hills is one of the richest Black communities in the U.S. and is listed in the National Register of Historic Places. It is also producer-actor Issa Rae's hometown and the inspiration for her HBO drama Insecure, about Black L.A. single life.

Historical discrimination through exclusionary housing policies and practices, plus a dwindling supply of housing and a variety of other factors have limited Black families from purchasing homes at the same rate as their White counterparts.

In 2019, the homeownership rate among white non-Hispanic Americans was 73.3%, compared to 42.1% among Black Americans. This 31.2 percentage point difference was the largest gap since the Census' time series began in 1994.

Which racial group has the lowest rates of homeownership? ›

However, the racial homeownership gap is most striking for Black households. At just 41.7 percent, Black households have the lowest homeownership rate nationally—30.0 percentage points lower than white households.

Single women own roughly 10.7 million homes, compared to 8.1 million for single men, according to a recent analysis from LendingTree that looked at 2021 Census data.

While the U.S. homeownership rate increased to 65.5% in 2021, the rate among Black Americans lags significantly (44%), has only increased 0.4% in the last 10 years and is nearly 29 percentage points less than White Americans (72.7%), representing the largest Black-White homeownership rate gap in a decade.

Conclusion: The Catholic Church owns the most land, far more than McDonald's and billionaire Bill Gates.

A third of California homeowners own their properties free and clear. Nearly 2.4 million homeowners across the state in 2021 had no property mortgage, the third highest among the states and Washington, D.C., the Orange County Register reported.

Homeownership statistics by race show that the highest rates of homeownership are held by White households.

Despite affordability challenges, the Hispanic homeownership rate reached 48.6% in 2022, the eighth consecutive year of growth.

Sixty-six percent of first-time homebuyers are white, 14 percent are Hispanic, 11 percent are Asian American and 9 percent are Black. Only 8 percent of homebuyers age 23 to 31 and another 8 percent age 32 to 41 report “getting a mortgage” as the most difficult step in the homebuying process.

In 2022, the proportion of households which are occupied by owners stood at 65.9 percent. The U.S. homeownership rate was the highest in 2004 before the 2007-2009 recession hit and decimated the housing market. The rate continued to fall until 2016, but has begun to increase again since then.

Is homeownership the largest source of wealth among families? ›

Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.

Private individuals and corporations own about 60 percent of U.S. land while Federal, State, and local governments own the rest.

Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.

Only 3% of American millionaires received an inheritance of $1 million or above. Real estate makes up about 40% of a typical millionaire's net worth.

Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate. There are several reasons for this, but in today's article, we'll share seven reasons why millionaires invest in real estate.

Indeed, the largest non-mortgage expenses for all borrowers are utilities, property taxes, and home improvement expenses. Transaction costs at purchase and sale comprise roughly 20 percent of total costs, with the broker fees at sale standing out as the largest such expense.

For the last eight years, Latinos have remained the outstanding cohort, posting continuous homeownership growth throughout that period. In 2022, Hispanic homeowners added 349,000 homes to their owned properties, increasing their homeownership rate to nearly 49 percent.