Housing affordability differs among races and ethnic groups, finds the National Association of Home Builders, which analyzed home affordability by race.
While NAHB found that 72.8 percent of all homes sold in the U.S. in 2010 were affordable to families earning the national median income of $64,400, researchers discovered homes aren’t always that affordable when broken down by race.
Affordability differences are “dramatic and persistent across racial and ethnic lines,” says NAHB chief economist David Crowe about the findings.
Housing Affordability by Race
The NAHB found the following differences in housing affordability when broken down by race:
- Whites: 80.3 percent of homes sold were affordable to white families earning the group’s median income of $69,000.
- Asians: 76.4 percent of homes sold were affordable to Asian families earning the median income of $80,500.
- American Indians/Alaska Natives: 58.7 percent of homes sold were affordable to American Indians/Alaska Natives earning the median income of $43,200.
- Blacks: 53 percent of homes sold were affordable to blacks earning the median income of $42,300.
- Hispanics: 51 percent of homes sold were affordable to Hispanics earning the median income of $44,100.
By breaking down the data by race and ethnicity, “we have an even more accurate picture of housing affordability,” says NAHB chairman Bob Nielsen. “Builders have generally known that their efforts to build affordable housing were especially important to minorities in their communities, and this new report helps confirm that.”
source: National Association of Home Builders