Not all families have the same opportunities for homeownership, with many facing more constraints in their effort to achieve the American Dream. There are sizeable differences in the homeownership rate across racial groups, with the rate of homeownership for minority families lagging behind the national average. Given that homeownership contributes to wealth accumulation and that the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical White family was nearly eight times greater than that of a Black family ($24,100) in 2019.
NAR's Snapshot of Race & Home Buying in America report examines the homeownership rate among each race in 2019 using American Community Survey data by state and the changes in the homeownership rate by race from 2009 to 2019. Using the Profile of Home Buyers and Sellers data from 2020, the report looks into the characteristics of who purchases homes, why they purchase, what they purchase, and the financial background for buyers based on race.
Homeownership Rates for White Americans:
Nationwide: 70%
Minnesota: 76%
Homeownership Rates for Black Americans:
Nationwide: 42%
Minnesota: 25%
Homeownership Rates for Asian Americans:
Nationwide: 61%
Minnesota: 60%
Homeownership Rates for Hispanic Americans:
Nationwide: 48%
Minnesota: 49%
Share of households that can afford to buy the typical home in Minnesota:
White Americans: 68%
Black Americans: 40%
Asian Americans: 70%
Hispanic Americans: 55%
While Minnesota trends in line with national homeownership rates, the gap for Black American homeownership is well below the national average. Minnesota Realtors®, the National Association of Realtors®, and local Realtor® associations/boards will continue to on policies and initiatives that strive to make homeownership available to all.
Please visit our Downpayment Assistance Research page as we look for ways to assist individuals and families achieve the American dream of homeownership.
Read the full report here: https://www.nar.realtor/newsroom/nar-finds-black-home-buyers-more-than-twice-as-likely-to-have-student-loan-debt-be-rejected-for