Black Homeownership in the U.S. Achieves Record Annual Growth

According to the National Association of Realtors’ 2025 Snapshot of Race and Home Buying in America, Black homeownership in the U.S. experienced the largest year-over-year percentage increase in 2023 compared to other racial groups, even though its overall rate still trails far behind that of White homeowners.

This comprehensive real estate market report delves into the profiles of new entrants to the housing market while examining how factors such as demographics, affordability, and access to financing shape homeownership trends among various racial and ethnic communities. It also reviews homeownership rates in all 50 states and Washington, D.C., drawing on data from NAR’s 2024 Profile of Home Buyers and Sellers. The study scrutinizes buyer demographics, the reasons behind their purchase decisions, types of properties acquired, and their financial situations—with a distinct focus on racial disparities.

Jessica Lautz, NAR’s deputy chief economist and vice president of research, explained, “This report deepens our understanding of how different racial and ethnic communities participate in the housing market. By offering detailed, local insights into both obstacles and achievements, it equips industry professionals to navigate these dynamics more effectively.”

In 2023, Black homeownership climbed to 44.7%, marking a 0.6 percentage point increase—the strongest annual growth among all racial groups. Yet, this rate remains notably lower than those for White (72.4%, up 0.1 point), Asian (63.4%, up 0.1 point), and Hispanic (51.0%, down 0.1 point) homeowners.

Despite ongoing challenges with affordability, the overall homeownership rate in the United States rose to 65.2% in 2023, up from 63.5% in 2013. This increase translates to roughly 11.8 million more homeowners over the past decade, with the rate rebounding in 2023 after a decline in 2022.

Among the different racial groups, Hispanic Americans witnessed the most significant surge in homeownership since 2013—a gain of 5.8 percentage points, adding 3.5 million new homeowners. Asian households followed closely with a 5.6 percentage point increase (1.6 million additional homeowners), then White households with a 3.6 point rise (702,200 new homeowners), and Black Americans with a 2.8 percentage point gain (adding 1.2 million homeowners). Nevertheless, the disparity between Black and White homeownership has widened since 2013, now standing at 28 percentage points.

Notable demographic shifts include an upswing in homeownership among younger buyers. About one in three Hispanic households falls within the key 25-to-40 age bracket. Additionally, the number of Asian households in this age group has jumped by 34% since 2013, and Hispanic households in predominantly Hispanic communities have grown by 21% over the past decade.

Affordability remains a critical issue. Nearly half of all renters spend more than 30% of their income on rent, and in 46 states, Black renters face more severe affordability challenges than their White counterparts. Furthermore, Black homeowners in 39 states tend to allocate over 30% of their income to housing expenses, underscoring the disproportionate financial burden they bear.

Mortgage lending disparities continue as well. Black applicants face a denial rate of 21%, and Hispanic applicants 17%, compared to 11% for White applicants and 9% for Asian applicants.

Lautz also observed, “First-time buyers today still contend with challenges related to affordability and credit access, and purchasing power varies regionally. It’s crucial for buyers to account for the full scope of housing expenses—including utilities, insurance, and commuting costs—along with the mortgage.”

Over the last decade, the median annual cost for homeowners insurance surged by 53%, climbing from $860 in 2013 to $1,310 in 2023. Within this context, Black homeowners face the highest costs at $1,360, followed by Asian homeowners at $1,330, White homeowners at $1,310, and Hispanic homeowners at $1,300.

Data from NAR’s 2024 Profile of Home Buyers and Sellers shows that White buyers accounted for 83% of total home purchases, while Black, Hispanic, Asian, and Other buyers made up 7%, 6%, 4%, and 3%, respectively. Interestingly, among first-time homebuyers, the figures shift dramatically: 49% are Black, 43% are Asian, 41% are Hispanic, and only 20% are White.

“Non-White homebuyers tend to be first-time buyers,” Lautz added. “This trend highlights how changing demographics and age distributions in local markets will drive further increases in homeownership among non-White buyers in the coming years.”

When it comes to down payments, Black buyers are most likely to tap into 401(k) or pension funds (11%) and rely on community or government assistance (5%). In contrast, Asian buyers posted the highest median down payment at 21%, with White buyers following at 19%.

Student loan debt continues to burden many buyers. Forty-two percent of Black buyers (up from 41% the previous year) and 23% of Hispanic buyers (down from 29%) carry student loans, with Black and White buyers recording the highest median balances at $30,000.

Finally, issues of discrimination persist throughout the home buying process. Bias in loan product offerings was reported by 47% of Black buyers and 33% of Asian buyers. Moreover, 5% of both Black and Asian buyers, as well as 2% of Hispanic buyers, experienced race-based discrimination during their home purchase journey.