Black Homeownership Rate Sees Largest Annual Increase Among Racial Groups but Still Trails White Homeownership Rate by Almost 30 Percentage Points

/EIN News/ -- WASHINGTON, March 17, 2025 (GLOBE NEWSWIRE) -- Key Highlights

• Hispanic Americans experienced the most pronounced homeownership rate increase (+5.8 percentage points or 3.5 million homeowners) in the last decade (2013-2023), the largest of all racial groups.
• Black homeowners experience higher housing cost burdens in 39 states, spending more than 30% of their income on housing costs.
• One in three Hispanic households fall into the 25-40 age group of homebuying age. Asian households aged 25-40 increased 34% since 2013, and 21% more young Hispanic households are in Hispanic communities than 10 years ago.

The U.S. Black homeownership rate experienced the greatest year-over-year increase in 2023 among racial groups, yet it still falls significantly behind the White homeownership rate, according to the National Association of RealtorsÒ 2025 Snapshot of Race and Home Buying in America.

This real estate market intelligence report highlights who is entering the U.S. housing market and how demographics, affordability and financing-access shape homeownership trends among different racial and ethnic groups. It explores homeownership rates among racial groups in all 50 states and the District of Columbia. Leveraging NAR’s 2024 Profile of Home Buyers and Sellers data, the report also examines the demographics of home buyers, motivations for purchasing, types of properties acquired and financial profiles – specifically focusing on racial distinctions.

“This report provides the housing ecosystem with in-depth information about how racial and ethnic groups approach the housing market,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “It helps industry professionals by providing detailed local information about challenges and success.”

While the Black homeownership rate (44.7%; +0.6 percentage points) achieved the highest annual gain among all races in 2023, it remains substantially lower than White (72.4%; +0.1 percentage points), Asian (63.4%; +0.1 percentage points) and Hispanic (51.0%; -0.1 percentage points) homeownership rates.

Despite ongoing affordability challenges, the U.S. homeownership rate was higher in 2023 (65.2%) than a decade ago (63.5% in 2013), with approximately 11.8 million more homeowners. Notably, the annual homeownership rate increase in 2023 reversed the year-over-year decline in 2022. 

Hispanic Americans registered the largest homeownership rate increase (+5.8 percentage points or 3.5 million homeowners) – the largest of all racial groups since 2013 – followed by Asian (+5.6 percentage points or 1.6 million homeowners), White (+3.6 percentage points or 702,200 homeowners) and Black Americans (+2.8 percentage points or nearly 1.2 million homeowners). Even with improvements, the Black-White homeownership rate gap has widened since 2013, standing at 28 percentage points.

One in three Hispanic households fall into the 25-40 age group of homebuying age. Asian households aged 25-40 increased 34% since 2013, and 21% more young Hispanic households are in Hispanic communities than 10 years ago.

Nearly half of renters spend more than 30% of their income on rent. In 46 states, Black renters face greater affordability challenges than their White counterparts.

Black homeowners experience higher housing cost burdens in 39 states, spending more than 30% of their income on housing costs. Black (21%) and Hispanic (17%) applicants face significantly higher mortgage denial rates compared to White (11%) and Asian (9%) applicants.

“Today’s first-time home buyers continue to face housing affordability and credit-access challenges, but the situation nationwide varies when assessing purchasing power,” Lautz said. “Buyers have always had to consider total home costs – including utilities, insurance and commuting expenses – which are especially important when taking the initial steps into ownership.”

A decade ago, homeowners paid a median of $860 per year for homeowners insurance. In 2023, that number rose to $1,310 – a 53% increase. By race, Black homeowners pay more for homeowners’ insurance than any other group. In 2023, the median homeowners’ insurance cost was $1,360 for Black, $1,330 for Asian, $1,310 for White and $1,300 for Hispanic homeowners.

According to NAR’s 2024 Profile of Home Buyers and Sellers, White buyers (83%) made up the largest share of total buyers, followed by Black (7%), Hispanic (6%), Asian (4%) and Other (3%) buyers. Of first-time home buyers, 49% are Black, 43% are Asian, 41% are Hispanic and 20% are White.

“Non-White home buyers are more likely to be first-time buyers, underscoring the importance of changing demographics and the age of local populations, which will increase non-White homeownership over time,” added Lautz.

For down payment sources, Black home buyers used 401(k)/pension (11%; down from 17% last year) and community/government down payment assistance programs (5%) more than any other group. The typical down payment was highest among Asian buyers at 21% and White buyers at 19%.

Forty-two percent of Black buyers (up from 41% last year) and 23% of Hispanic buyers (down from 29% last year) reported having student loan debt. Black and White buyers both had the largest student loan debt at $30,000.

Black (47%) and Asian (33%) buyers were most likely to report discrimination during their transaction in the type of loan product they were offered. Five percent of Black and Asian, and 2% of Hispanic buyers, experienced discrimination based on race.

NAR Advocacy
NAR advocates for policy solutions that help close homeownership gaps, including strong enforcement of the federal fair housing laws. To address challenges faced particularly by first-time, first-generation and buyers of color, NAR advocates for down payment assistance for qualified buyers, updated credit scoring models and the use of special purpose credit programs. Realtors^® are tackling housing affordability challenges by advocating that all levels of government support the construction of housing that is affordable to the typical consumer; preserving, expanding and creating tax incentives to renovate distressed properties and converting unused commercial space to residential units and incentivize zoning reform to allow for more homebuilding. NAR hosted policymakers and housing industry leaders to collaborate on solutions at its policy forum, “A Nation of Homeowners: How Tax Reform Can Boost the American Dream.” A key priority for NAR is addressing expiring provisions of the Tax Cuts and Jobs Act in 2025. With home buying increasingly out of reach due to high demand and decades of low housing production, tax reforms could expand access to homeownership and strengthen communities.

About the National Association of Realtors^®
As America’s largest trade association, the National Association of Realtors^® is involved in all aspects of residential and commercial real estate. The term Realtor^® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors^® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.

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Information about NAR is available at nar.realtor. This and other news releases are posted in the newsroom at nar.realtor/newsroom. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab.

Attachment

• 2025 Snapshot of Race and Home Buying in America

Lauren Cozzi
                    National Association of REALTORS®
                    202/383-1178
                    LCozzi@nar.realtor