From Your President
of the Pee Dee REALTOR ® Association Amy McCalman Kirby
The Path To Homeownership Can Be Steeper for Some Americans
As we celebrate Black History Month , we honor and recognize the past and present experiences of Black Americans . A significant part of this experience is investing in a home of their own . While equitable access to housing has come a long way , the path to homeownership is still steeper for households of color . It ’ s an important experience to talk about , along with how working with the right real estate experts can make all the difference for diverse homebuyers . We know it ’ s a more challenging journey to achieve homeownership for some because there ’ s still a measurable gap between the overall average U . S . homeownership rate and that of nonwhite groups . Today , the lowest homeownership rate persists in the Black community ( see graph below ):
Homeownership is an essential piece for building household wealth that can be passed down to future generations . However , there are obstacles in the homebuying process that can negatively impact certain racial and ethnic groups , including the Black community . This can delay or prevent many from achieving homeownership , challenging their ability to grow their net worth . A report by Vanessa G . Perry of the George Washington University School of Business and Janneke Ratcliffe of the Urban Institute explains :
“. . . households of color have much lower homeownership rates than white households and consequently hold , at the median , just one-eighth the wealth of white households .”
On top of that , when Black households do become homeowners , research shows they pay more for those homes overall than the average household . Raheem Hanifa , a Research Analyst for the Joint Center for Housing Studies of Harvard University , tells us :
“ Black homeowners not only have primary mortgages with higher interest rates than white homeowners with similar incomes , they also have higher interest rates than white homeowners with substantially lower incomes , . . . Black homeowners have experienced systemic barriers to homeownership and wealth-building opportunities that have limited their ability to access credit , which is a key component in receiving low mortgage interest rates .”
For Black homebuyers , the inequity that remains in housing can be a point of pain and frustration . That ’ s why it ’ s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process . These professionals aren ’ t only experienced advisors who understand the market and give the best advice . They ’ re also compassionate allies who will advocate for your best interests every step of the way .
Bottom Line
Opportunities in real estate improve every day , but there are still equity challenges that many face . Connect with a local REALTOR to make sure you have an advocate on your side as you walk the path to homeownership .
6 - REAL ESTATE WEEKLY www . peedeerealestateweekly . com Equal Housing Opportunity