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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 70 April 2025 J O U R N A L "Today's first-time home buyers continue to face housing affordability and credit-access challenges, but the situation nationwide varies when as- sessing purchasing power," Lautz said. "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." The 25–40 age range is when one in three Hispanic households is ready to buy a property. There are 21% more young Hispanic households in Hispanic areas than there were ten years ago, and Asian households between the ages of 25 and 40 have grown by 34% since 2013. Over 30% of renters' income is spent on rent. Black renters had more difficulty finding affordable housing than their white counterparts in 46 states. In roughly 39 states, Black home- owners bear a greater burden of housing expenditures, with housing ex- penses accounting for over 30% of their income. Compared to white (11%) and Asian (9%) applicants, Black (21%) and Hispanic (17%) applicants had substan- tially higher mortgage denial rates. Changes in Homeownership Rates Across the Years U.S. homes spent an average of $860 annually for home insurance 10 years ago. That amount increased by 53% to $1,310 in 2023. It may come as no surprise to some, but Black homeown- ers pay the highest rates for homeown- ers' insurance of any racial group. Black homeowners' insurance costs in 2023 were $1,360, Asian homeowners' costs were $1,330, white homeowners' costs were $1,310, and Hispanic homeowners were $1,300. White homebuyers (83%) account- ed for the biggest share of all buyers, followed by Black buyers (7%), His- panic buyers (6%), Asian buyers (4%), and other buyers (3%), according to NAR's 2024 Profile of Home Buyers and Sellers. Black Americans make up 49% of first-time homebuyers, followed by Asians (43%), Hispanics (41%), and white people (20%). "Non-white home buyers are more likely to be first-time buyers, under- scoring the importance of changing demographics and the age of local pop- ulations, which will increase non-white homeownership over time," Lautz said. More Black homebuyers than any other demographic used communi- ty/government down payment help programs (5%) and 401(k)/pension (11%; down from 17% last year) as sources of down payment. The average down payment was 19% for white buyers and 21% for Asian buyers. Student loan debt was indicated by 23% of Hispanic pur- chasers (down from 29% last year) and 42% of Black buyers (up from 41% last year). At $30,000 each, Black and white buyers owed the most in college loans. Customers who were provided a particular loan product were more likely to report prejudice during their transaction if they were Black (47%) or Asian (33%). Some 2% of Hispanic consumers and 5% of Asian and Black consumers reported racial prejudice. Homeownership Rates Across Racial & Ethnic Groups — Household Trends, Challenges & More The 2025 Snapshot of Race and Home Buying in America report tracks homeownership rates across racial and ethnic groups, identifying trends and potential challenges nationwide. Here's what NAR's race and homebuying report found: Black Households: According to the survey, despite the historic increase in 2023, the Black home- ownership rate is still around 45%, which is lower than that of other groups. Over the 10 years, the number of Black households who own a home has increased by about 1.2 million, or 2.8 percentage points. The report states that although the increasing trend in Black homeownership is commendable, it has not kept up with the growth rates of other racial/ethnic groups. • States with highest homeownership rates: Mississippi (58%), Delaware (56%), and South Carolina (56%) HOMEOWNERSHIP TRENDS BY RACE IN THE LAST DECADE HOMEOWNERSHIP RATES Y RACE 2013-2023) DENIAL RATES