Real estate surprise: Latinos, Asian Americans see biggest homeownership gains
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The share of Hispanic, Black and Asian Americans who own a home grew over the past decade despite soaring interest rates in the past few years, according to the National Association of Realtors.
Why it matters: Homeownership is "Americans' biggest asset," says Jessica Lautz, deputy chief economist and vice president of research for the association.
- "We know the typical homeowner has nearly $400,000 in wealth in comparison to the typical renter who has just over $10,000 in wealth."
Details: A report by NAR released Tuesday shows that Asians and Hispanics had the largest gains in homeownership rates from 2012 to 2022, while Black Americans had the smallest.
- 63% of Asian Americans owned a home in 2022, compared to 57% in 2012.
- Hispanics' share hit a record 51% in 2022, up from slightly more than 45% in 2012.
- Black Americans' rate went from 42.5% in 2012 to 44% in 2022.
- White Americans continue to have the highest ownership rates, increasing from 69% to 72% in the same time frame.
Between the lines: Although interest rates began to rise in 2022, peaking at nearly 8% last year, ownership rates have continued to climb, according to NAR.
- "It's really important to note that even though we see a lower homeownership rate (for Latinos and Asian Americans) in comparison to white households, they are gaining ground," Lautz tells Axios.
Yes, but: Black and Latino households are still seeing higher denial rates for mortgage loans, Lautz says.
- Data shows Black Americans still experience intense discrimination in all aspects of home ownership.
State of play: Geography plays a major role in homeownership for people from different racial and ethnic backgrounds.
- Latinos (71%) and Black residents (57%) had the highest rates of homeownership in two of the poorest states — New Mexico and Mississippi, respectively.
- That's because homes there are more affordable and there are programs that help first-time homebuyers, Lautz says.
- Asian Americans had the highest rates in Hawaii, Maryland and South Carolina.
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