Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans
Today, we take time to honor and commemorate the past and present experiences of Black Americans. When it comes to real estate, in particular, African-American families have a lot further to go when it comes to equal housing access. However, the road toward homeownership is still more difficult for households of color.
The Gap in Homeownership Rate in America
The measurable gap between the overall average U.S. homeownership rate and that of non-white populations suggests it's a more difficult route for some buyers to acquire home ownership. Today, Census data reveals that the lowest homeownership rate persists in the Black community (see graph below):
This graph clearly shows a disparity in the proportion of people in each neighborhood who are able to buy a house.
How Homeownership Impacts Household Wealth
One of the difficulties that may make purchasing a house more difficult for these groups is how hard it is to acquire money. Even today, there are obstacles certain racial and ethnic minorities, particularly the Black community, continue to confront. A recent article from NextAdvisor states:
“The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.”
This can delay or prevent many from achieving homeownership, challenging their ability to grow their net worth and build wealth that can pass down to future generations – a point that’s clear in a 2022 report from the National Association of Realtors (NAR):
“Given that homeownership contributes to wealth accumulation and 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 8 times greater than that of a Black family ($24,100) in 2019.”
It's critical to discuss the difficulties Black homebuyers may encounter as they pursue their goal of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process.
These experts aren't simply knowledgeable advisors that know the market and provide the best advice. They're also compassionate allies who will fight for your best interests every step of the way. They can guide you to useful information and tools that will assist you on your journey to homeownership.
Every day, real estate opportunities develop, yet there are still equity issues that many individuals face. Connect with The Perreault Group to make sure you have a champion on your side who can assist you in obtaining your desired house ownership goal.