The National Association of Realtors recently released their study on race and home buying. The study looks at trends over the past ten years. The majority of year specific data is from 2019, though there is some COVID data also.
Real estate has long been known a major wealth creator for American households. In addition to wealth, research shows: "Owning a home is associated with better educational performance in children, higher participation in civic and volunteering activity, better health care outcomes and lower crime rates in the communities."
We also know full well that BIPOC households have been systematically denied access to homeownership since the concept of homeownership was invented. This plays out in the disparity of household wealth between Black and white households.
In 2019, the average net worth of white households was $188,200, as compared to the $24,100 net worth of Black households. At the same time, the white homeownership rate is 70% as compared to 41% for Blacks.
In Oregon, the white homeownership rate is 65% (lower than much of Amercia) and the Black homeownership rate is 36%. When looking at affordability in Oregon, 46% of white households can afford to buy the average house. Only 22% of Black households can afford that same house.
As you might imagine, in Oregon, Black home buyers finance their real estate purchases at higher rates (93%) than what home buyers. Our current market is flush with cash offers, making homeownership an increased challenge for those financing their purchase.
But get this, in Idaho, North Dakota and South Dakota, there is NO data showing Black home buyers in 2019. whoa.
Check out the study linked above. I was surprised, in a good way, that single Black women bought homes at a higher rate, 31%, than did single white women, 17% ( I know those numbers can tell a variety of stories, and are affected by a variety of factors). Do you see anything that challenges your assumptions?
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