Black homebuyers have the lowest homeownership rates in the nation by race, but a new survey finds hope.
Among the races surveyed, Black respondents were the most confident that they'll be active buyers over the next year, according to NeighborWorks America, a community development nonprofit. NeighborWorks America, based in Washington, D.C., surveyed 2,201 adults nationwide. Of those respondents, 41% of Black adults responded positively followed by 32% of Hispanics and 25% of White adults. Asians were excluded from the survey.
The survey runs counter to current market trends but offers hope that more diverse buyers will enter the market in the coming years.
From 2012 to 2024, the Black homeownership rate increased only 1.6 percentage points to 44%, according to the National Association of Realtors' "Snapshot of Race and Home Buying in America." Nearly 950,000 more Black Americans transitioned to homeownership, according to the report. "The Black homeownership rate remains below 45%, well below the rate of any other group."
The survey is based on a 129-question survey sent in 2023 to 189,750 people who bought a primary residence that past year. The NAR received 6,817 responses and published the report last year.
Whites had the highest homeownership rates in the United States: 72%, a 3.1% percentage point increase since 2012, according to the report.
Asian Americans saw the "most pronounced increase in homeownership in that time frame," according to the NAR, which reflects a 6.1% percentage point increase to 63%.
Hispanic American homeowners made up 51%, a 5.4% percentage point increase. That's equal to roughly 3.2 million more owners, according to the report.
Homebuyer education eases the path to homeownership
For NeighborWorks America, the survey on buyers’ feelings toward homeownership gives the team a sense of what information house hunters need and where their association can fill in gaps, Melton said.
“People need accurate information in order to make homeownership a reality. That’s across all races. Homeownership is challenging. It seems to be out of reach for many people,” said Noelle Melton, NeighborWorks America vice president of national homeownership programs and lending.
Vanessa Perry, the interim dean at George Washington University’s School of Business, has dedicated decades to studying the racial divides in accessing homeownership and finds that people of color still face countless hurdles to obtaining their own homes.
“The two groups cited that have the highest intentionality of homebuying are those who have the lowest homeownership rates and are significantly more likely to be challenged when it comes to affordability,” Perry said. “Times have certainly not changed. This confidence level has nothing to do with the affordability of housing,” Perry said.
However, Melton said the survey results should be seen holistically since the survey focuses broadly on buyer sentiment.
Hurdles exist, but homebuying is possible with the right strategy, said Cordelia Anderson, a real estate agent with the Miami-Dade County-based I Heart Real Estate LLC, an affiliate of Coldwell Banker. Anderson has guided buyers for the past two decades in South Florida. She said paying down credit card debt and car loans and holding down the same job for at least two years can boost a buyer’s chances of being approved for a loan.
“The journey reflects resilience, being resourceful, financial planning and tight budget constraints, most importantly,” Anderson said. “Once they have that desire, then they can come up with a plan."