These states have the most homeowners of color
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More people of color have become homeowners over the past decade, but a wide racial gap remains, according to a recent report.
Why it matters: Owning a house is how most people in America build wealth and pass it down to younger family members.
The big picture: Some racial and ethnic groups are seeing faster homeownership gains than others, per the report by the National Association of Realtors (NAR).
- Barriers include worsening affordability and unequal credit access, researchers say.
By the numbers: The U.S. homeownership rate for Black households was around 45% in 2023, up from roughly 42% in 2013, NAR's analysis of Census Bureau data shows.
- It's still below the rates for white households (72%), Asian households (63%) and Hispanic households (51%).
What they found: Hispanic and Asian American households recorded the biggest jumps in homeownership rates, according to the report.
- That's partly because of rapid population growth, especially among younger people looking to buy homes, and increased economic stability, the authors note.
Reality check: Black and Hispanic homebuyers see higher denial rates for mortgages, per Home Mortgage Disclosure Act data analyzed by NAR.
- Research also shows Black Americans continue to experience discrimination in housing.
Between the lines: In more affordable areas, homeownership is more accessible for people from different racial and ethnic backgrounds.
- Black and Hispanic households had the highest homeownership rates in 2023 in Mississippi and New Mexico, respectively, NAR found.
- Asian households had the highest rates in Hawaii, Florida and Maryland.
What we're watching: Aspiring homeowners are often left paying expensive rents that eat into their incomes.
- "For many, this limits their ability to accumulate savings, qualify for a mortgage, and transition to homeownership in a competitive market," the report's authors write.
