By Race

2023

Snapshot of Race and Home

Buying in America

National Association of REALTORS®

Research Group

Lawrence Yun, Ph.D.

Chief Economist and Senior Vice President

Jessica Lautz, Dr. of Real Estate

Deputy Chief Economist and Vice President of Research

Nadia Evangelou

Senior Economist, Director Real Estate Research

Brandi Snowden

Director, Member and Consumer Survey Research

Meredith Dunn

Research Manager

NAR Research Staff

May not be reprinted in whole or in part without permission of the

National Association of REALTORS®.

For reprint information, contact [email protected]rg.

Table of Contents

Homeownership Trends, Housing Affordability by

Race and Racial Disparities in the Mortgage Market

Methodology: Section One

Home Buyer Demographics from the 2022 Profile

of Home Buyers and Sellers

Home Buyers and Fair Housing 37

Methodology: Section Two and Three 41

Homeownership

Trends, Housing

Affordability by

Race and Racial

Disparities in the

Mortgage Market

In the meantime, research has consistently shown that

homeownership is also associated with multiple economic and

social benefits to individual homeowners. Homeownership has

always been an important way to build wealth. Homeowners

have built more than $200,000 in housing wealth in the last

decade. In addition to tangible financial benefits,

homeownership brings substantial social benefits to families,

communities, and the country as a whole. Owning a home is

associated with better educational performance in children,

higher participation in civic and volunteering activities, better

health care outcomes, and lower crime rates in communities.

Thus, this report examines the homeownership trends among

each race and the challenges that they face to become

homeowners. Since all real estate is local, the report also

examines homeownership across race groups and locations in

order to explain the current racial disparities in the housing

market. Finally, using the Profile of Home Buyers and Sellers data

from 2022, the report looks at the characteristics of who

purchases homes, why they purchase, what they purchase, and

the financial background of buyers based on race.

Introduction

Housing affordability reached historic lows in 2022. Rising

mortgage rates and home prices significantly hurt

affordability, forcing many buyers out of the market.

Mortgage rates have doubled from the previous year, while

home prices reached all-time highs in 2022. Buyers need to

earn more than $100,000 if they want to purchase the

median-priced home without going beyond their budget.

Meanwhile, for potential first-time buyers, it’s not just

mortgage rates. Rents continue to increase, making it even

more difficult for them to save for a down payment. Thus,

first-time home buyers are facing a double whammy in

affordability. Consequently, the housing market has slowed

down.

However, not all families have the same opportunities for

homeownership, with many facing additional constraints in

their effort to purchase a home. Data show that there are

sizeable differences in homeownership rates across

demographic groups, with the rate of homeownership for

minority families lagging behind the national average.

Given that homeownership contributes to wealth

accumulation and the homeownership rate is lower in

minority groups, the net worth for these groups is also

lower. At $188,200, the net worth of a typical white family

was nearly 8 times greater than that of a Black family

($24,100) in 2019.

Homeownership Trends in the Past Decade

Americans today are more likely to own a home than they were 10 years ago. There are about 9.2 million more

homeowners now than in 2011. Specifically, the homeownership rate was 65.5% in 2021 compared to 64.7% in 2011.

In fact, the homeownership rate has continuously risen since 2015, when homeownership reached its lowest level in

the history of the data. In the meantime, another survey from the U.S. Census, the Current Population Survey (CPS),

indicates that the homeownership rate increased in 2022 compared to 2021 despite rising mortgage rates and

inflation.

However, the overall homeownership rate does not tell the full story.

Homeownership rates vary significantly by race/ethnic group. Although the homeownership rate has increased

across any race/ethnic group in the last decade, the Black homeownership rate continues to lag well behind. Data

show that the gap between Black homeownership rates and the homeownership rate of any other race/ethnic

group is even larger than in 2011, as the Black homeownership rate remains below 45%. For example, the gap

between Black and white homeownership rates is 29% compared to 26% in 2011.

The homeownership rate for white Americans has been

consistently nearly 70% since 2017. During the same period,

the homeownership rate for Black Americans has been

nearly 30 percentage points lower than that of white

Americans – above 41% from 2017 on. For Hispanic

Americans, the homeownership rate has held above 47%,

and for Asian Americans, it has been above 59% over the

same time period.

Homeownership Trends by Race in the Last Decade

In the last decade, Asian and Hispanic Americans experienced the

largest homeownership rate gains. The homeownership rate for

Hispanic Americans rose by 4 percentage points within the past 10

years, pushing the rate above 50%. Although the homeownership

rate for Black households rose by 0.4 percentage points since 2011,

it’s still lower than 45%. As a result, the homeownership gap

between white and Black households became even larger in 2021.

Delaware (81%), Mississippi (80%),

and South Carolina (79%) were

the states with the highest

homeownership rates for white

Americans in 2021.

In contrast, the District of

Columbia (50%), Hawaii (59%),

and California (63%) had the

lowest homeownership rates.

The homeownership rate for

white Americans varied from

50% to 81% across the country.

Among 51 states, including the

District of Columbia, 32 states

had a homeownership rate for

white Americans higher than

72.7% – the national rate - in

2021.

Homeownership Rate for White Americans

by state

Homeownership Rate for Black Americans

by state

South Carolina (55%), Delaware

(54%), and Mississippi (54%)

were the states with the

highest homeownership

rates for Black Americans in

2021.

In contrast, North Dakota (15%),

South Dakota (25%), and

Alaska (27%) had the lowest

homeownership rates.

The homeownership rate for

Black Americans varied from

15% to 55% across the country.

Among 51 states, including the

District of Columbia, 16 states

had a homeownership rate for

Black Americans higher than

44.0% - the national rate- in

2021.

Homeownership Rate for Asian Americans

by state

Mississippi (76%), Florida (73%),

and Hawaii (73%) were the states

with the highest homeownership

rates for Asian Americans in 2021.

In contrast, North Dakota (28%),

Vermont (33%), and the District of

Columbia (37%) had the lowest

homeownership rates.

The homeownership rate for Asian

Americans varied from 28% to 76%

across the country. Among 51

states, including the District of

Columbia, 23 states had a

homeownership rate for Asian

Americans higher than 62.8% - the

national rate - in 2021.

Homeownership Rate for Hispanic Americans

by state

West Virginia (67%), New Mexico

(67%), and Vermont (66%) were

the states with the highest

homeownership rates for

Hispanic Americans in 2021.

In contrast, North Dakota (27%),

New York (29%), and

Massachusetts (32%) had the

lowest homeownership rates.

The homeownership rate for

Hispanic Americans varied from

27% to 67% across the country.

Among 51 states, including the

District of Columbia, 31 states had

a homeownership rate for

Hispanic Americans higher than

50.6% - the national rate - in 2021.

Racial Inequalities in Housing Affordability

Among all races, Black homeowners spend more of their

income in order to own their homes. Data show that

Black homeowners are more squeezed than any other

race/ethnic group. Thirty percent of Black homeowners

spend more than 30% of their income on housing,

representing nearly 2 million Black homeowners.

Nevertheless, 21% of white homeowners are cost-

burdened, followed by Asian (26%) and Hispanic (28%)

homeowners.

At the local level, Black homeowners are cost-burdened

in some areas more than others. For example, in both

South Dakota (67%) and Wyoming (59%), more than half

of Black homeowners are cost-burdened. Data show

that the low income of Black homeowners in these areas

is the main reason that so many need to spend more

than 30% of their income on housing. In Wyoming, the

median household income of Black homeowners was

below $60,000 in 2021, while they typically own homes

with a median value of $360,000.

In contrast, fewer than 10% of Black homeowners were cost-

burdened in North Dakota, New Hampshire, and Vermont. In

these states, the median income of Black homeowners was

over $70,000 in 2021, while in New Hampshire, the typical

Black homeowner earns about $135,000.

Racial Inequalities in Housing Affordability

Share of owners who spend more than 30% of their income on housing

Affordability Challenges for Renter Households

Data show that Black renter households are also more

squeezed than any other race/ethnic group. Fifty-four

percent of Black renters spend more than 30% of their

income on rent. And about 30% of Black renters spend more

than 50% of their income on rent, representing nearly 2.5

million households. In contrast, 22% of white renters are

severely cost-burdened, spending over 50% of their income

on rent. This translates to about 5.1 million white renter

households.

The main reason that Black renter households are more

cost-burdened is that although they have a lower income

(30% lower) than white renters, their monthly rent isn’t

significantly lower than that of white renters. In 2021, the

median income of Black renters was $32,600, compared to

$45,310 for white renters. In the meantime, the average

monthly rent was $1,050 for white compared to $855 for

Black renter households. While rental cost is expected to

rise even further in 2023, it will be even more difficult for

Black renter households to save for a down payment for a

home purchase.

At the local level, Black renters are cost-burdened in some

areas more than others. In Hawaii, Vermont, California,

Nevada, and Florida, more than 60% of Black renters are

cost-burdened.

But how many renters can currently afford to buy the

typical home with mortgage rates near 6.5%? This could

give an idea of how many people can make the transition

from renting to homeownership, boosting the Black

homeownership rate. After comparing the qualifying

income to purchase the typical home with the median

income of renter households, the National Association of

REALTORS® estimated that while 17% of white renters can

afford to buy the median-priced home, only 9% of Black

renters can do nationwide. Less than 5% of Black renters

earn the qualifying income in Wyoming, Idaho, Hawaii, the

District of Columbia, and California. Thus, the

homeownership gap between white and Black

households will continue to persist.

However, with more than 30% of Black renters earning the

qualifying income, Alaska, West Virginia, and South

Dakota may see an uptick in the Black homeownership

rate.

White Renter Households that Can Afford to Buy the Typical Home

by state

Mississippi (42%), Alabama (38%),

and Arkansas (38%) were the areas

with the highest number of

white renter households that

can afford to buy the typical

home.

In contrast, Hawaii (6%), Utah (9%),

and Idaho (10%) were the areas

with the lowest number of white

renter households that can

afford to buy the typical home.

The share of white renters varied

from 6% to 42% across the

country. Among 51 states,

including the District of Columbia,

40 states had more white renter

households that can afford to buy

the typical home compared to

nationwide – 17%.

Black Renter Households that Can Afford to Buy the Typical Home

by state

Alaska (36%), West Virginia (35%),

and South Dakota (32%) were the

areas with the highest number of

Black renter households that

they can afford to buy the

typical home.

In contrast, Hawaii (2%), Idaho

(2%), and Wyoming (2%) were the

areas with the lowest numbers of

Black renter households that

can afford to buy the typical

home.

The share of Black renters varied

from 2% to 36% across the

country. Among 51 states,

including the District of Columbia,

41 states had more Black renter

households that can afford to buy

the typical home compared to

nationwide – 9%.

Asian Renter Households that Can Afford to Buy the Typical Home

by state

North Dakota (63%), Kentucky

(60%), and Ohio (59%) were the

areas with the highest number of

Asian renter households that

can afford to buy the typical

home.

In contrast, Hawaii (5%), the

District of Columbia (11%), and

California (14%) were the areas

with the lowest number of Asian

renter households that can

afford to buy the typical home.

The share of Asian renters varied

from 5% to 63% across the

country. Among 51 states,

including the District of Columbia,

36 states had more Asian renter

households that can afford to buy

the typical home compared to

nationwide – 30%.

Hispanic Renter Households that Can Afford to Buy the Typical Home

by state

Maine (54%), Oklahoma (46%), and

West Virginia (45%) were the areas

with the highest number of

Hispanic renter households that

can afford to buy the typical

home.

In contrast, California (3%), Hawaii

(4%), and Colorado (5%) were the

areas with the lowest number of

Hispanic renter households that

can afford to buy the typical

home.

The share of Hispanic renters

varied from 3% to 54% across the

country. Among 51 states,

including the District of Columbia,

37 states had more Hispanic

renter households that can afford

to buy the typical home

compared to nationwide – 13%.

At the local level, in states with high concentrations of Black

households, the denial rate is disproportionately high for

Black homeowners and buyers. Low income seems to be

the main reason that more Black households were denied

mortgages in these areas. Specifically, in states with a denial

rate higher than 20%, the median income of Black

applicants was $59,160 on average. For instance, the median

income for Black households was $53,030 in Mississippi,

which was the state with the highest denial rates across the

country. Nevertheless, as income increases, denial rates

drop. In states with a denial rate lower than 15%, the median

income of those applicants was $79,740. For example, the

income of Black households that applied for a mortgage

was $109,440 in Hawaii, one of the states with the lowest

denial rates for Black loan applicants.

Beyond affordability challenges, Black and Hispanic home

buyers also face extra challenges in getting a mortgage.

Denial rates vary significantly by race/ethnic group, with

Black Americans having the highest denial rates for

purchase and refinance loans. According to Home Mortgage

Disclosure Act (HMDA) data, 20% of Black and 15% of

Hispanic loan applicants were denied mortgages, compared

with about 11% of white and 10% of Asian applicants.

Parsing out by the purpose of the loan, denial rates for Black

Americans are even higher for home improvement loans.

According to Home Mortgage Disclosure Act (HMDA), nearly

17% of the loan applications for a home purchase, 17% of the

applications for refinancing, and 51% of home improvement

loan applications from Black Americans were denied. These

racial disparities in the mortgage market contribute to the

persistent homeownership gap between white and Black

households. Purchasing a home is one of the largest

financial transactions made in a person’s lifetime, with

about 90% of home buyers getting a mortgage.

Racial Disparities in the Mortgage Market

Denial Rates

Denial Rates for White Applicants

By state

West Virginia (14%), Florida (14%),

and Mississippi (14%) were the

states with the highest denial

rates for white Americans in 2021.

In contrast, Minnesota (8%),

Nebraska (8%), and Alaska (8%)

had the lowest denial rates.

Denial rates for white Americans

varied from 7% to 14% across the

country. Among 51 states,

including the District of Columbia,

19 states had a denial rate for

white Americans higher than 11% -

the national rate - in 2021.

Denial Rates for Black Applicants

By state

Mississippi (29%), Louisiana (25%),

and South Carolina (25%) were the

states with the highest denial

rates for Black Americans in 2021.

In contrast, Colorado (13%), South

Dakota (13%), and North Dakota

(13%) had the lowest denial rates.

Denial rates for Black Americans

varied from 11% to 29% across the

country. Among 51 states,

including the District of Columbia,

12 states had a denial rate for

Black Americans higher than 20%

- the national rate - in 2021.

Denial Rates for Asian Applicants

By state

Florida (15%), Mississippi (14%), and

Rhode Island (14%) were the

states with the highest denial

rates for Asian Americans in 2021.

In contrast, South Dakota (6%),

Nebraska (8%), and the District of

Columbia (8%) had the lowest

denial rates.

Denial rates for Asian Americans

varied from 6% to 18% across the

country. Among 51 states,

including the District of Columbia,

23 states had a denial rate for

Asian Americans higher than 10%

- the national rate - in 2021.

Denial Rates for Hispanic Applicants

By state

Mississippi (19%), Rhode Island

(19%), and New York (18%) were

the states with the highest denial

rates for Hispanic Americans in

2021.

In contrast, Alaska (10%), Montana

(11%), and the District of Columbia

(11%) had the lowest denial rates.

Denial rates for Hispanic

Americans varied from 10% to 19%

across the country. Among 51

states, including the District of

Columbia, 21 states had a denial

rate for Hispanic Americans

higher than 15% - the national rate

- in 2021.

Methodology: Section One

Using the ACS Public Microdata Sample (PUMS) data, NAR was able to compute

homeownership rates and affordability by race at the state level. The American

Community Survey releases the Public Use Microdata Sample (PUMS) files every year,

which include population and housing unit records with individual response information.

Regarding renters’ affordability, qualifying income for a 30-year fixed rate mortgage

was computed assuming a 10% down payment. Monthly principal and interest was

limited to 25% of income. After defining the qualifying income for each state, NAR

calculated the percent of renter households for each race/ethnicity that have an income

higher than the qualifying income for that specific area.

Using the Home Mortgage Disclosure Act (HMDA) data, NAR computed the denial rates

by race in 2021. To calculate mortgage denial rates, NAR divided all denied loans by total

loan applications for each race/ethnic group.

The Uniform Appraisal Data (UDA) Aggregate Statistics data from the Federal Housing

Finance Agency (FHFA) were used to compute the share of appraisal below the

contract value and the median appraised value in high-minority, minority 50.1%-80%

and low-minority areas.

Home Buyer

Demographics

from the

2022 Profile of

Home Buyers

and Sellers

Using data from the 2022 Profile of Home Buyers and Sellers report,

we can look into the characteristics of recent home buyers, their

reasons for purchasing, the steps they took in the home buying

process, and the ways buyers financed their home purchase based

on race.

Among all home buyers, White/Caucasian home buyers made up

the largest share at 88%, followed by Hispanic/Latino (8%),

Black/African American home buyers (3%), Asian/Pacific Islander

(2%), and Other at 3%.

Among Hispanic/Latino home buyers, we see the largest share of

married couples at 81%. Single female home buyers were most

common among Black/African American home buyers (27%). Forty-

nine percent of Black/African American and 43% of Asian/Pacific

Islander buyers were first-time home buyers. While the majority of all

buyers had two-income households, the highest share of one-

income households was found among White/Caucasian households

at 40%, and Black/African American and Asian/Pacific Islander

households both at 38%.

Fifteen percent of Hispanic/Latino and 14% of White/Caucasian and

Black/African Americans purchased multi-generational homes.

Among those groups, they primarily purchased a multi-

generational home to spend more time with aging parents,

health/caretaking of aging parents/relatives, wanting a larger home

that multiple incomes could afford together, and cost savings. The

share of multi-generational buyers was only 12% among Asian/Pacific

Islander buyers.

Home Buyer Demographics by Race/Ethnicity

The family continues to play a role in helping buyers in entering

the market. Twenty-two percent of Asian/Pacific Islanders, and

11% of Hispanic/Latino, buyers used a gift from a relative or

friend towards their downpayment for their home. Another way

to help the family is living at home before buying. Twenty-two

percent of Asian/Pacific Islander home buyers and 14 percent of

both Hispanic/Latino and Black/African American buyers lived

with parents, relatives, or friends prior to purchasing their home,

compared to only 12% of White/Caucasian buyers.

Hispanic/Latino home buyers reported the highest share of

student loan debt at 46%, with a median amount of

$70,000. Black/African American home buyers reported a

median student loan debt amount of $35,300, with 33% saying

they had student loan debt. Asian/Pacific Islander buyers had

the highest share of buyers with at least some college education.

The main reasons for Asian/Pacific Islander buyers being rejected

by a mortgage lender were their low credit score and being

unable to verify their income. The main reasons for Black/African

American buyers were due to low credit score and their debt-to-

income ratio.

2023 Snapshot of Race and Home Buying in America

All Buyers

White/Caucasian

88%

Hispanic/Latino

Black/

African American

sian/Pacific Islander

Other

Note: Respondents were permitted to select as many races and ethnicities as they felt applicable.

The percentage distribution may therefore sum to more than 100 percent.

Source: 2022 Profile of Home Buyers and Sellers

Race/Ethnicity of Home Buyers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific

Islander

Hispanic/Latino White/Caucasian

arried couple

46% 58% 81% 60%

Single

female

27 24 7 17

Single

male

13 4 5 9

married couple

10 12 6 11

Other

5 2 1 3

Household Composition by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific

Islander

Hispanic/Latino White/Caucasian

rst-time buyers

49% 43% 32% 24%

Repeat

buyers

51 57 68 76

Median

age

50 41 43 55

Median

household income

$80,000 $110,400 $117,500 $85,000

Income

earners in household

None

1% 1% * 2%

One

38 38 30 40

Two

50 45 67 49

Three or more

11 15 3 10

Buyer Demographics by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islander Hispanic/Latino White/Caucasian

Purchased

new home

17% 9% 6% 6%

urchased previously owned

home

83 91 94 94

Detached

single-family

76% 73% 87% 80%

Mobile/manufactured home

6 7 4 8

Cabin/cottage

1 * 4 4

Townhouse/row

house

4 6 4 3

Duplex/apartment/condo

2 5 1 2

Other

11 8 1 3

Median

square feet of home

purchased

1,780 1,930 2,000 1,800

Characteristics of Home Purchased by

Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islander Hispanic/Latino White/Caucasian

Purchased

through a real estate

agent

or broker

82% 97% 94% 87%

Primary

reason for purchasing a

home

Desire

to own home of own

47% 52% 23% 20%

Desire

for larger home

5 10 4 7

Desire

for a home in a better

area

8 6 3 8

Change

in family situation (e.g.

marriage,

birth of child, divorce,

etc.)

3 1 2 6

Job

-related relocation or move

5 6 6

Desire

to be closer to

family/friends/relatives

5 4 6 14

Desire

to be closer to

job/school/transit

1 2 36 2

Purchased Through Real Estate Agent/Broker, and Reasons For Purchase by

Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Purchased Multi-Generational Home by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific

Islander

Hispanic/Latino White/Caucasian

Multi

-generational

household

14% 12% 15% 14%

Reasons for purchase

Health/caretaking

of aging parents/relatives

32% 23% 24% 22%

To spend more time

with aging parents

28 21 15 11

Cost savings

32 50 17 12

Children/relatives over

18 moving back into the

house

32 * 11 17

Wanted a larger home

that multiple incomes

could afford together

20 29 24 20

Children/relatives over

18 never left home

16 * 20 15

None of the above

16 * 27 18

Other

8 7 4 9

* Less than 1 percent

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific

Islander

Hispanic/Latino White/Caucasian

Savings

50% 65% 66% 46%

Proceeds

from sale of primary

residence

20 27 24 39

401k/pension

fund including a

loan

16 5 8 5

Gift

from relative or friend

10 22 11 8

Tax refund

5 5 10 3

Loan

from relative or friend

5 7 2 2

Sale

of stocks or bonds

2 14 4 5

Sources of Downpayment by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islander Hispanic/Latino White/Caucasian

living arrangement

Rented

an apartment or house

53% 44% 23% 26%

Owned

previous home

31 34 62 60

Lived

with

parents/relatives/friends,

paid

rent

5 14 9 5

Lived

with

parents/relatives/friends,

did not

pay

rent

8 5 7

Rented

the home ultimately

purchased

2 * 1 2

Prior Living Arrangement by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific

Islander

Hispanic/Latino White/Caucasian

Less

than high school

2% 3% 6% 1%

High

School diploma

24 12 20 27

ssociates degree

22 7 7 16

achelor's degree

24 30 13 24

me graduate work

5 6 7 7

ster's degree/MBA/law

degree

17 31 44 19

Doctoral

degree

6 10 3 5

Have

student loan debt

33% 13% 46% 17%

Median

student loan debt

amount

$35,300 $30,600 $70,000 $30,000

Education Level of Household Head and Student Debt by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islander Hispanic/Latino White/Caucasian

Median

number of times

application

was denied

1 1 1 1

Reason

for being rejected by

mortgage

lender

Debt

-to-income ratio

33% 11% 25% 28%

Low

credit score

50 25 13 24

Income

was unable to be verified

* 25 * 12

Not

enough money in reserves

13 * 13 7

Insufficient

downpayment

11 22 * 10

Too

soon after refinancing another

property

* * * 1

Don't

know

* * 13 8

Other

13 25 50 29

Buyer Mortgage Application Had Been Rejected From Mortgage Lender

by Race/Ethnicity

* Less than 1 percent

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Home Buyers and

Fair Housing

In addition to being asked about their recent home buying

experience, recent home buyers were also asked if they had

experienced or witnessed discrimination during their real

estate transaction. When asked about their neighborhood and

if the majority of residents are the same race as them, 68% of

both Black/African American and Hispanic/Latino home buyers

and 59% of Asian/Pacific Islander home buyers said that the

majority of their neighborhood is not the same race as them.

This is compared to only 11% of White/Caucasian home buyers

saying that the majority of their neighborhood is not the same

race as them. Seventy-five percent of White/Caucasian home

buyers said that the majority of the neighborhood was the

same race as them. In comparison, 19% of both Black/African

American and Asian/Pacific Islander and 17% of Hispanic/Latino

home buyers said that the majority of their neighborhood was

the same race as them.

Looking at ways recent home buyers witnessed or experienced

discrimination in a real estate transaction, the most common

discrimination for Hispanic/Latino home buyers was steering

towards or away from specific neighborhoods at 50%. Thirty-

nine percent of Black/African American home buyers

experienced or witnessed discrimination in the appraisal of their

homes. Hispanic/Latino and Black/African American home

buyers were more likely to report witnessing or experiencing

discrimination with the refusal of the homeowner or agent to

show a property to particular classes.

Home Buyers and Fair Housing

When recent home buyers were asked whether they

experienced discrimination in a real estate transaction, 8%

of Black/African American and 4% of Asian/Pacific Islander

home buyers experienced discrimination based on race.

Five percent of Black/African American and three percent of

Asian/Pacific Islander home buyers experienced

discrimination based on color. Forty-two percent of

Black/African American, 35% of Asian/Pacific Islander, 17% of

Hispanic/Latino, and 23% of White/Caucasian home

buyers did not experience discrimination in their real estate

transaction but believe that it exists. Twelve percent of

Black/African American and three percent of

White/Caucasian home buyers reported the discrimination

against them to a government agency.

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islande

Hispanic/Latino

White/Caucasian

The

majority of residents in

neighborhood

are the same race as

respondent

Yes,

majority are same race

19% 19% 17% 75%

No,

majority are not same race

68 59 68 11

on’t know

13 21 15 14

Ways

respondent witnessed or

experienced

discrimination in a real

estate

transaction

Steering

towards or away from specific

neighborhoods

12% * 50% 29%

strict requirements for themselves

12 17 * 24

Type

of loan product offered

17 17 7 18

Purchase

offer denied for possibly

discriminatory

reasons

18 * * 23

Refusal

of home owner or agent to show

property

to particular classes

24 * 46 15

Appraisal of home

39 17 * 9

Other

6 67 * 26

Neighborhood Residents and Discrimination in Transactions by Race/Ethnicity

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Racial and Ethnic Distribution

Black/African

American

Asian/Pacific Islande

Hispanic/Latino

White/Caucasian

Experienced

discrimination in a real

estate

transaction against any of the

following

Race

8% 4% * *

Color

5 3 * *

Religion

* * * *

Sex

2 * * *

Disability

* * 2 *

Familial

status (including marriage or

parental

status)

* * * *

National

Origin

* 2 * *

Sexual

orientation

* * 2 *

Not

sure

5 4 1 1

No,

but I believe it exists

42 35 17 23

45 57 79 75

Reported

the discrimination to a

government

agency

Yes,

reported

12% * * 3%

No,

did not report

88 100 100 97

Discrimination in Home Search and Reporting Discrimination by Race/Ethnicity

* Less than 1 percent

Source: 2022 Profile of Home Buyers and Sellers

2023 Snapshot of Race and Home Buying in America

Methodology: Sections Two and Three

In July 2022, NAR mailed out a 129-question survey using a random sample weighted to be representative of sales on

a geographic basis to 153,045 recent home buyers. The recent home buyers had to have purchased a primary

residence home between July 2021 and June 2022. A total of 4,854 responses were received from primary residence

buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 3.2 percent.

Respondents had the option to fill out the survey via hard copy or online. The online survey was available in English

and Spanish.

Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent

home buyers derived from county records. Information about sellers comes from those buyers who also sold a home.

All information in this Profile is characteristic of the 12-month period ending June 2022, with the exception of income

data, which are reported for 2021. In some sections, comparisons are also given for results obtained in previous

surveys. Not all results are directly comparable due to changes in questionnaire design and sample size. Some results

are presented for the four U.S. Census regions: Northeast, Midwest, South, and West. The median is the primary

statistical measure used throughout this report. Due to rounding and omissions for space, percentage distributions

may not add to 100 percent.

Data gathered in the report is based on primary residence home buyers. From the Realtors Confidence Index, 87

percent of home buyers were primary residence buyers in 2021, which accounts for 5,857,350 homes sold in 2021

(accounting for new and existing homes). Using that calculation, the sample at the 95 percent confidence level has a

confidence interval of plus-or-minus 1.41%.

2023 Snapshot of Race and Home Buying in America

The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members, including NAR’s institutes, societies and councils,

involved in all aspects of the real estate industry. NAR membership includes brokers, salespeople, property managers, appraisers, counselors and others engaged in both

residential and commercial real estate.

The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and

subscribes to its strict Code of Ethics.

Working for America’s property owners, the National Association provides a facility for professional development, research and exchange of information among its members and

to the public and government for the purpose of preserving the free enterprise system and the right to own real property.

NATIONAL ASSOCIATION OF REALTORS®

RESEARCH GROUP

The Mission of the NATIONAL ASSOCIATION OF REALTORS® Research Group is to

produce timely, data-driven market analysis and authoritative business intelligence to serve

members, and inform consumers, policymakers and the media in a professional and accessible

manner.

To find out about other products from NAR’s Research Group, visit

nar.realtor/research-and-statistics

NATIONAL ASSOCIATION OF REALTORS®

Research Group

500 New Jersey Avenue, NW

Washington, DC 20001

202-383-1000

[email protected]tor

2023 Snapshot of Race and Home Buying in America