Black Homeownership Sees Gains, But Gaps Persist, NAR Report Finds

From Staff Reports

The U.S. Black homeownership rate saw the largest year-over-year increase in 2023 among racial groups, yet it continues to lag significantly behind White homeownership, according to the National Association of Realtors’ 2025 Snapshot of Race and Home Buying in America.

The report provides insight into homeownership trends across racial and ethnic groups, analyzing factors such as affordability, financing access, and demographic shifts. Using data from NAR’s 2024 Profile of Home Buyers and Sellers, it also examines buyer demographics, motivations, property types, and financial profiles, with a focus on racial disparities.

Gains in Black Homeownership, But Persistent Disparities

The Black homeownership rate rose to 44.7% in 2023, a 0.6 percentage-point increase — the highest among all racial groups. However, it remains far below the homeownership rates for White (72.4%), Asian (63.4%), and Hispanic (51.0%) households.

While affordability remains a significant barrier, overall U.S. homeownership grew to 65.2% in 2023, up from 63.5% a decade ago. Since 2013, Hispanic homeownership saw the largest increase (+5.8 percentage points, or 3.5 million homeowners), followed by Asian (+5.6 percentage points), White (+3.6 percentage points), and Black (+2.8 percentage points). However, the Black-White homeownership gap has widened over the past decade to 28 percentage points.

Affordability and Housing Cost Burdens

Renters continue to face affordability challenges, with nearly half spending more than 30% of their income on rent. In 46 states, Black renters experience higher cost burdens than their White counterparts. Among homeowners, Black households in 39 states spend more than 30% of their income on housing costs.

Mortgage access remains an issue, with Black (21%) and Hispanic (17%) mortgage applicants facing significantly higher denial rates compared to White (11%) and Asian (9%) applicants.

“Today’s first-time home buyers continue to face affordability and credit-access challenges,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Buyers have always had to consider total home costs, including utilities, insurance, and commuting expenses, which are especially important when taking the initial steps into ownership.”

Rising Costs and Barriers to Entry

The cost of homeownership has risen sharply. Homeowners paid a median of $860 per year for homeowners insurance a decade ago; in 2023, that number increased to $1,310 — a 53% jump. Black homeowners paid the highest median homeowners insurance cost at $1,360, followed by Asian ($1,330), White ($1,310), and Hispanic ($1,300) homeowners.

According to NAR data, White buyers made up the largest share of total home buyers in 2023 (83%), followed by Black (7%), Hispanic (6%), and Asian (4%) buyers. Among first-time buyers, Black (49%) and Asian (43%) buyers led the way, compared to Hispanic (41%) and White (20%) buyers.

Non-White buyers were more likely to use alternative financing sources. Black buyers were the most likely to rely on 401(k) or pension withdrawals (11%) and community or government down payment assistance programs (5%). The highest median down payments were among Asian (21%) and White (19%) buyers.

Student loan debt remains a challenge, with 42% of Black buyers and 23% of Hispanic buyers reporting student debt. Black and White buyers had the highest median student loan debt at $30,000.

Discrimination remains a concern, with Black (47%) and Asian (33%) buyers most likely to report discrimination in loan products offered. Five percent of Black and Asian buyers, and 2% of Hispanic buyers, reported experiencing racial discrimination during the homebuying process.

Addressing the Gaps

NAR continues to advocate for policies aimed at closing the homeownership gap, including enforcing federal fair housing laws, expanding down payment assistance for first-generation buyers, updating credit scoring models, and supporting special purpose credit programs.

Realtors are also pushing for zoning reforms to increase housing supply, tax incentives to renovate distressed properties, and the conversion of underutilized commercial spaces into residential units. As Congress debates the future of tax policy, NAR is prioritizing reforms that could expand homeownership access at a time when demand remains high and housing supply lags.

For more insights, read the full NAR report on the 2025 Snapshot of Race and Home Buying in America.