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Despite persistent housing affordability challenges, about 11.8 million Americans achieved homeownership in the last decade, according to the National Association of REALTORS®’ 2025 Snapshot of Race and Home Buying in America report.
The report calls out a “remarkable” 6 percentage point increase in the Hispanic American homeownership rate while Asian and Black households saw a jump of 5.6 percentage points and 2.8 percentage points, respectively. The White homeownership rate increased by 3.6 percentage points despite a decline in their share of the population over the last 10 years, NAR’s report notes.
A bright spot is that in 2023 alone, the Black homeownership rate saw the largest year-over-year gain of any racial group, climbing 0.6 percentage points to 44.7%. Still, that’s far behind the White homeownership rate of 72.4%—and the gap between the two has only grown wider. Housing affordability, access to credit and demographic trends are all factors that affect homeownership rates, the report notes.
Non-White home buyers are more likely to be first-time buyers, notes NAR Deputy Chief Economist Jessica Lautz. That underscores the importance of changing demographics and may help give real estate professionals a window into their challenges.
“Today’s first-time home buyers continue to face housing affordability and credit access challenges, but the situation nationwide varies when assessing purchasing power,” Lautz says. “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.”
A Breakdown of Who’s Buying
NAR’s report tracks homeownership rates across racial and ethnic groups, identifying trends and potential challenges nationwide. (The association also produces a profile of home buyers by racial group on the metro level.) Here’s what NAR’s race and home buying report found.
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 household incomes for accelerating ownership rates among Hispanics.
- States with highest homeownership 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 average first-time buyer: $214,100
Asian Households
The homeownership rate for Asian Americans rose 5.6 percentage points, with the addition of 1.6 million homeowners in the last decade. The report notes that a couple of factors fueling their ownership rates were economic stability and education attainment.
- States with highest homeownership rates: Hawaii (75%), Florida (74%) and Maryland (73%)
- States with lowest homeownership rates: North Dakota (30%), District of Columbia (38%) and West Virginia (39%)
- States with the highest share of renter households that can afford to buy a typical home: West Virginia (66%), Delaware (58%) and Arkansas (57%)
- Median household income of recent buyers: $135,000
- Median down payment: 21%
- Percentage of purchasers who were first-time buyers: 43%
- The purchasing power of the average first-time buyer: $301,800
Black Households
The Black homeownership rate has risen 2.8 percentage points, or by nearly 1.2 million households, in the last decade. “While it’s certainly encouraging to observe this upward trend in Black homeownership, it has not matched the pace of growth seen in other racial/ethnic groups,” the report notes.
The Black homeownership rate remains below 45%, lower than other groups, despite the record gain in 2023, the report notes.
- States with highest homeownership rates: Mississippi (58%), Delaware (56%) and South Carolina (56%)
- States with lowest homeownership rates: North Dakota (10%), Montana (20%) and Maine (21%)
- States with the highest share of renter 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 average first-time buyer: $163,080
White Households
The White homeownership rate has risen in the last decade, even as the White population declined by about 3.4 million households. Still, the White homeownership rate increased from 68.8% in 2013 to 72.4% in 2023, or by about 702,200 households.
- States with highest homeownership rates: Delaware (81%), Mississippi (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: Mississippi (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 average first-time buyer: $220,770
How Agents Are Helping to Drive Homeownership Rates
The NAR report notes several ways that real estate professionals can help more households achieve homeownership, including:
- Identify high-growth buyer demographics in your area. For example, consider the unique preferences of Hispanic and Asian home buyers, whose homeownership rates have been increasing rapidly. They may be more drawn to multigenerational living, which is often a strong component of other cultures. “Develop tailored marketing and outreach strategies,” the NAR report suggests. “Understanding where demand is growing helps real estate professionals connect with the right buyers.”
- Focus on first-time buyer programs. Struggling to afford elevated home prices and mortgage rates, more home buyers may benefit from FHA or VA loans as well as down payment assistance programs. The report finds that the highest share of recent buyers who used FHA loans were Black buyers (37%), followed by Hispanics (25%), Asians (14%) and Whites (12%). Eighteen percent of recent Black home buyers also took advantage of VA loans. Consider partnering with lenders specializing in FHA or VA loans, as well as first-time buyer programs, to offer solutions that could address any housing affordability challenges.
- Develop home buyer education programs to increase outreach. Team up with lenders who specialize in serving diverse clients, and create educational programs focused on strategies to build credit, save for a down payment and shop around for a mortgage. Work with lenders who can offer pre-qualification assessments so buyers can better understand their financing options before they begin their home search.
- Leverage local affordability trends. Help aspiring first-time home buyers identify potential homeownership opportunities in a variety of housing types and locations. For example, develop partnerships with homebuilders, local governments and housing nonprofits in markets with strong renter conversion potential, the NAR report suggests.
