The gulf between Black homeowners and White is actually getting bigger, not smaller | CNN Business (2024)

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The gulf between Black homeowners and White is actually getting bigger, not smaller | CNN Business? ›

While more Americans own homes today than a decade ago and the rate is increasing across all races, the gap between Black homeownership rates and that of any other race or ethnic group is even larger now than in 2011, according to a new analysis by the National Association of Realtors.

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%.

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.

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.

Yet no-mortgage owners in California are only 33% of all homeowners – and only four places have a smaller share: D.C. at 24%, Maryland at 28% and Colorado and Utah at 30%.

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.

The decline in homeownership halted between: 2012 and 2016 for householders with less than a high school education (19.9% to 20.8%). 2016 and 2018 for those with a high school degree (30.8% to 31.4%).

The median household income for Black U.S. households in 2021 is $46,400, which means half of households headed by a Black person earn more than that and half earn less. Broader analysis shows that 52% of Black U.S. households earn less than $50,000, while 48% make $50,000 or more.

Homeowner rates by race and ethnicity

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

Neighborhoods with a majority of Latino or Hispanic, Asian American, or white residents do not experience home price devaluation, using the same model. Appraisal bias explains a fraction of the devaluation of homes in Black neighborhoods: approximately 9% to 19%, depending on modeling approaches.

What race owns the most homes in America? ›

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%.

'” 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%.

Fewer than one quarter of American households live debt-free.

The country with the highest free-and-clear homeownership rate in the list above was Lithuania at 83%. In the U.S., the free-and-clear homeownership rate was 23%. If free-and-clear homeownership is the American Dream, then apparently Lithuania and many other countries are living the American Dream.

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.

Racial minorities experience homelessness at a disproportionate rate. For example, black or African Americans make up 13% of the general population but 40% of the homeless population. Indigenous people across the country continue to experience homelessness at even higher rates.

70% of the Indian-American population in America holds a bachelor's degree. Harsh Goenka has explained why Indians are the highest-earning ethnic group in the USA. The chairman of RPG Enterprises shared a chart that shows Indian Americans having the highest median household income in the country.

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.

How Many Homes in the U.S. are Second Homes? Through our analysis we found that there are at least 2.64 million second homes in the U.S. that are for seasonal, recreational, or occasional use. How many homes are there in the United States?

Is the US housing market in trouble? ›

Are we in a housing bubble right now? While a housing price correction is expected, we aren't in a housing bubble. Demand for homes remains high, and there are fewer home sellers than there were in 2022. And while the market is cooling, experts don't expect an actual housing crash or a housing bubble burst in 2023.

Today China is a country of homeowners with more than 90% of households owning homes (87% in urban and 96% in rural China) (Clark, Huang, & Yi, 2019). At the same time, more than 20% Chinese households own multiple homes, higher than many developed nations (Huang et al., 2020).

To determine whether you can afford a $650,000 home you will need to consider the following 4 factors. Based on the current average for a down payment, and the current U.S. average interest rate on a 30-year fixed mortgage you would need to be earning $126,479 per year before taxes to be able to afford a $650,000 home.

If you're an aspiring homeowner, you may be asking yourself, “I make $70,000 a year: how much house can I afford?” If you make $70K a year, you can likely afford a home between $290,000 and $360,000*. That's a monthly house payment between $2,000 and $2,500 a month, depending on your personal finances.

How much do I need to make to buy a $300K house? To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.

As has long been the case, White Americans accounted for a large majority (86%) of firms whose ownership was classifiable by race and ethnicity in 2020. These firms brought in 93% of all revenue from classifiable companies that year.

The 2022 Land Report 100, compiled each year by The Land Report magazine, released its annual list of landowners who own the most acres in the United States. The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres.

Only about 7 million of California's roughly 40 million residents own their homes, the lowest rate of home ownership in the United States, according to a new study. The study, conducted by Ruby Home Luxury Real Estate, analyzed U.S. Census data to determine the rate of home ownership across the country.

A black house may also fade unevenly—if the south side of the house is exposed to constant harsh sun rays, it could fade quicker than other sides, making the exterior look uneven.

Absorb Heat from Sun

Black houses ultimately absorb a lot of heat from the sun because they are not reflective. There are both advantages and disadvantages to this. When a black house absorbs heat, it will be easier to keep it warm in the winter. This can help to lower your heating costs.

What devalues a house the most? ›

57.6% of black children, 31.2% of Hispanic children, and 20.7% of white children are living absent their biological fathers.

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%.

How have Chinese and Canadian investments developed over time? The share of Chinese investors in the U.S. real estate market remained somewhat constant until 2018 when it hovered at around 15 percent, before dropping to 11 percent in 2019 and then six percent in 2021.

The New York metropolitan area has the largest Black metropolitan population.

Nationwide, about 58% of households headed by Black or African American adults rent their homes, as do nearly 52% of Hispanic- or Latino-led households, according to Pew Research Center's analysis of census data.

What is the average credit score in America? ›

Credit scores are three-digit numbers that show an important piece of your financial history. Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 698, based on VantageScore^® data from February 2021. It's a myth that you only have one credit score.

On average, Americans carry around $5,733 in credit card debt, according to TransUnion's latest report. But when you break it down by age, most carry more than that.

Borrowing. Experian compared debt balances among men and women and found that, on average: Men have 2% more credit card debt than women. Men have 20% more personal loan debt than women.

In fact, O'Leary insists that it's a good idea to be debt-free by age 45 -- and that includes having your mortgage paid off. Of course, it's one thing to shed a credit card balance by age 45. But many people don't first buy a home until they reach their 30s.

According to Census Bureau data, over 38 percent of owner-occupied housing units are owned free and clear. For homeowners under age 65, the share of paid-off homes is 26.4 percent.

64% of Americans own real estate. 35% of the American population does not own their own homes. Homeownership rates have increased to nearly 65% in the US since the 1940s.

While the average age borrowers expect to pay off their mortgage is 59, the number of survey participants who have no idea when they will pay it off at all stood at 16%. In 2019, 9% of those asked didn't know and in 2020, 11% gave this answer.

The survey, "Retirement and Mortgages," by national mortgage banker American Financing, found 44 percent of Americans between the ages of 60 and 70 have a mortgage when they retire, and as many as 17 percent of those surveyed say they may never pay it off.

Key findings:

4% of people are behind on their mortgage payments.

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%.

Why did inequality of household income increase in the United States in recent decades? ›

These include, in no particular order, technological change, globalization, the decline of unions and the eroding value of the minimum wage. Whatever the causes, the uninterrupted increase in inequality since 1980 has caused concern among members of the public, researchers, policymakers and politicians.

While those born between 1981 and 1996 are within traditional home-buying ages, factors such as higher education levels, increased rent prices, and more densely packed cities have all contributed to the slower rate of home purchases for this generation.

The latest report from the National Association of Realtors found that baby boomers are now the largest generation of homebuyers, beating out millennials for the first time in years. Combined, younger boomers (ages 58 to 67) and older boomers (ages 68 to 76), made up 39% of homebuyers in 2022.

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.

Who Owns the Land? Of all private U.S. agricultural land, Whites account for 96 percent of the owners, 97 percent of the value, and 98 percent of the acres.

According to Credit Suisse, individuals with more than $1 million in wealth sit in the top 1 percent bracket. The billionaire class is $2.6 trillion richer than before the pandemic, even if billionaire fortunes slightly fell in 2022 after their record-smashing peak in 2021.

If you want to be a part of the 1% top earners in the US, you'll need an annual income of more than half a million dollars. American households need an annual gross income of $597,815 to be considered the highest-earning 1% in the country, a January 13 analysis by personal finance website SmartAsset found.

WASHINGTON (March 28, 2023) – The share of baby boomers has surpassed millennials and now makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors®.

One reason millennials aren't buying houses is simply because the money just isn't there and the rates are just too high. According to Daniel Pitner, a real estate agent out of Glendale, Arizona, “The current interest rate environment has made homeownership extremely expensive on a monthly basis.

Overall, 26% of adult Gen Zers own their home. That's compared with 79% of baby boomers, the highest share of any generation, followed by Gen X (71%) and millennials (52%).

What generation group is the most affluent in America? ›

Baby boomers have the highest household net worth of any US generation. Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.

Baby boomers also have been motivated to downsize and move closer to family. Baby boomers—people ages 58 to 76—accounted for 53% of sellers and 39% of buyers between July 2021 and June 2022, the most of any generation, NAR's report shows.

A recent study from apartment search website and research blog RentCafe reveals that the generation transitioned from renter to owner, with 52% of millennials, born between 1981 and 1996, owning a home in 2022.