Why black homeownership isnât bouncing back. Every racial group in America saw a dip in homeownership after the last housing crash, but most have come back in full forceâexcept African-Americans. The Washington Post sought to explain the depressed level of black homeownership, which has fallen from a record 50 percent in 2004 to 43 percent in 2017. (White homeownership was at 72.9 percent in 2017, and Hispanic homeownership was at 46.2 percent, both of which have been climbing in recent years.) A lack of affordable housing, low inventory, rollbacks in Obama-era diversity mandates, and continued discrimination in some markets have prevented more African-Americans from breaking into homeownership, according to the Post. Jessica Lautz, NARâs vice president of demographics and behavioral insights, also said that financial barriers, such as student loan debt, disproportionately affect blacks. âHalf of all African-Americans to the market are first-time buyers,â Lautz told the Post. âSo grappling with student debt and affordability issues generates a much greater barrier to homeownership.â
Most millennials regret their home purchase. CNBCâs âMake Itâ dissected a recent Bankrate survey showing that 63 percent of millennials had regrets about buying their current homes. Their biggest gripe, the survey shows, is that they underestimated the hidden costs of homeownership, including closing costs and home maintenance. Perhaps young adults need to be more realistic about the type of property they buy, NAR Chief Economist Lawrence Yun suggests in the article. âStart with a starter home and later trade up, rather than going for a âdream homeâ on the first try,â he told CNBC. However, rising home prices have made many properties unaffordable to millennials, the article notes, and there is a shortage of starter homes on the market. âWe need more affordable priced homes, and the shortage of these properties are forcing people to possibly over-stretch their budget,â Yun says. |
