The National Association of Realtors has released their “2025 Snapshot of Race and Home Buying in America Report.” According to their findings, homeownership rates among Black Americans continue to lag behind those of other racial groups.
Over the past decade, there has been steady progress in the number of homeowners throughout the country. As of 2023, the homeownership rate among Americans is 65.2 percent, up from 63.6 percent in 2013.
For Black Americans, the homeownership rate is 44.7 percent as of 2023. This is a 0.6 percentage point increase from 2022 and a 2.8 percentage point increase from 2013. Black Americans experienced the highest annual gain among all races from 2022 to 2023, but the smallest gain over the past decade. As of 2023, their homeownership rate is significantly lower than that of White (72.4 percent), Asian (63.4 percent) and Hispanic (51.0 percent) Americans. The Black-White homeownership gap has grown from 27 percentage points in 2013 to 28 percentage points in 2023.
The homeownership rate for Black Americans varied from 10 percent to 58 percent across the country. Mississippi (58 percent), Delaware (56 percent), and South Carolina (56 percent) had the highest Black homeownership rates, while North Dakota (10 percent), Montana (20 percent), and Maine (21 percent) had the lowest rates.
Compared to other groups, Black Americans have a significantly higher housing cost burden. In 39 states, Black Americans spend, on average, more than 30 percent of their incoming on housing. They also spend more on home insurance, spending a median of $1,360 annually.
Over one fifth of Black applicants have had a mortgage request denied, compared to 17 percent of Hispanic applicants, 11 percent of White applicants, and 9 percent of Asian applicants. Among those who are able to purchase a home, Black Americans are more likely to use 401(k)s or pensions (11 percent) and government assistance programs (5 percent) to fund their down payments.
