The minority homeownership rate increased to 48.6 percent in the fourth quarter of 2019, up 0.8 percentage points from the fourth quarter of 2018, according to a new data release from the Census Bureau’s Housing Vacancies and Homeownership survey (CPS/HVS) (Figure 1). This is the highest it has been since the third quarter of 2011 (48.9 percent). This year-over-year gain is higher than the gain in the overall U.S. homeownership rate, which rose 0.3 percentage points to 65.1 percent in the fourth quarter of 2019 (a six-year high). A separate Eyeonhousing.org post covers the U.S. homeownership rate in more detail.
Breaking down the minority homeownership rate shows that the Hispanic homeownership rate gained the most in the fourth quarter, with a 1.2 percentage point increase to 48.1 percent (from 46.9 percent in the fourth quarter of 2018).
The black homeownership rate posted the second largest gain of 1.0 percentage points to reach 44.6 percent in the fourth quarter of 2019 (from 43.6 percent in the fourth quarter of 2018). This is the largest quarter gain in the black homeownership rate since the first quarter of 2017.
Meanwhile, Other households (Asian, Pacific-Islander, Native American, and other race households) experienced a decline in their homeownership rate, dropping 1.0 percentage points to 57.1 percent (from 58.1 percent in the third quarter of 2019). The Other homeownership rate has now declined for four consecutive quarters (year-over-year declines), which is in contrast to strong gains seen for this group between the second quarter of 2017 and the third quarter of 2018.
The white homeownership grew by only 0.1 percentage points to 73.7 percent in the fourth quarter (from 73.6 percent in the fourth quarter of 2018). The white homeownership rate has not declined year-over-year since the first quarter of 2017 (Figure 2).
Mortgage rates are still relatively low, and a healthy job market has helped to make homeownership more affordable. In fact, housing affordability was at a three-year high in the third quarter of 2019, according to the National Association of Home Builders’ Housing Opportunity Index (HOI). These factors are most likely contributing to the recent upticks in the overall and minority homeownership rates.
Leave a Reply