DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1533987
71 April 2025 J O U R N A L April 2025 » • States with lowest homeownership rates: North Dakota (10%), Montana (20%), and Maine (21%) • States with the highest share of rent- er households that can afford to buy a typical home: North Dakota (64%), Wyoming (35%), and Kansas (33%) • Median household income of recent buyers: $100,000 • Median down payment: 8% • Percentage of purchasers who were first-time buyers: 49% • The purchasing power of the aver- age first-time buyer: $163,080 Hispanic Households: Hispanic Americans have seen the largest homeownership gains in the last decade, rising from 45.2% in 2013 to 51% in 2023—an increase of 3.5 million households since 2013. The report cites population growth and rising house- hold incomes as accelerating ownership rates among Hispanics. • States with highest homeown- ership rates: New Mexico (67%), Vermont (66%), and Michigan (63%) • States with lowest homeownership rates: North Dakota (26%), New York (28%), and the District of Columbia (30%) • States with the highest share of renter households that can afford to buy a typical home: Vermont (46%), Missouri (43%), and Kansas (41%) • Median household income of recent buyers: $96,300 • Median down payment: 13% • Percentage of purchasers who were first-time buyers: 41% • The purchasing power of the aver- age first-time buyer: $214,100 White Households: Despite a roughly 3.4 million house- hold reduction in the white population over the past decade, the white home- ownership rate has increased. The white homeownership rate did, howev- er, rise by roughly 702,200 households, from 68.8% in 2013 to 72.4% in 2023. • States with highest homeowner- ship rates: Delaware (81%), Mis- sissippi (80%), and South Carolina (80%) • States with lowest homeownership rates: District of Columbia (48%), Hawaii (58%), and California (63%). • States with the highest share of renter households that can afford to buy a typical home: Mississip- pi (45%), Illinois (38%), and West Virginia (36%) • Median household income of recent buyers: $110,000 • Median down payment: 19% • Percentage of purchasers who were first-time buyers: 20% • The purchasing power of the aver- age first-time buyer: $220,770 One positive aspect is that, in 2023 alone, the Black homeownership rate increased by 0.6 percentage points to 44.7%, the biggest year-over-year increase of any racial group. However, that still falls well short of the 72.4% homeownership rate for white people, and the difference has only widened. However, per the survey, housing affordability, access to financing and demographic trends are all variables that continue to affect homeownership rates. HANGING ONTO HOUSE AND HOME A new study by Redfin has found that the typical U.S. homeown- er stays in their house for 11.8 years, but homeowners in California— where Proposition 13 can lock owners into low property-tax rates—are staying put much longer. In Los Angeles, where homeowners hold onto their houses longer than any other U.S. metro, the median tenure was 19.4 years in 2024—the longest span on record for the area. It's followed closely by San Jose, with a median tenure of 18.3 years. Homeowners in San Francisco, San Diego, and Riverside also stay put longer than the average American. California is also home to three of the five U.S. metros with the biggest increases in homeowner tenure over the last decade. Providence, Rhode Island, had the biggest uptick, hitting a median tenure of 16.8 years in 2024, up from 10.9 years in 2014. It's followed by Los Angeles, San Jose, New Orleans, and San Francisco. Lower Taxes Found Appealing in the Golden State California homeowners tend to "Long-term homeowners tend to have low monthly payments. If they were to move—even using their equity as a down payment—they would have a much higher monthly payment because home prices and interest rates have soared over the last several years."