Americans are waiting longer to buy their first homes, have more debt and more often need family help to make the purchase amid a supply crunch that is pushing up prices, according to a new data released Friday.
But African Americans and Hispanics continue to make up a very small share of homebuyers in the United States, far below their share of the population, according to National Association of Realtors report.
While low interest rates have made mortgages more accessible, and historically low unemployment means more Americans have a steady paycheck, the influx of buyers combined with a shortage of workers means homebuilders have not been able to keep up with demand.
The report shows the median sales price in September was up to $272,100 compared to $259,300 for all of 2018 and $197,100 five years earlier.
NAR has long highlighted the shortage of homes on the market but the report puts the implications of that problem in stark relief.
African Americans comprise just four percent of homebuyers, despite making up 13 percent of the US population, the report said.
Hispanics make up seven percent, while they are 18 percent of the population.
“There’s no way to sugarcoat how low the Hispanic and African American homebuyers (rate) has been and… how far it’s fallen from before the recession to today,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights.
With homeownership for blacks in particular at historic lows, this has “very large implications for their ability… to build wealth and to be able to build a nest egg,” Lautz told AFP.
She notes research showing minorities are less likely to apply for a loan, more likely to be denied for mortgages and less likely to have family help, “which is a key down payment source for first time homebuyers today.”
– Homes in short supply –
One third of first-time homebuyers have family help for their down payment, either through a gift or a loan, she said.
At the same time, African American first-time homeowners “have significantly more student loan debt than white homebuyers do… which is in a significant hurdle, holding back many potential buyers.”
The report showed 39 percent of first-time buyers had student loan debt, a median amount of $30,000.
NAR Chief Economist Lawrence Yun stressed that the housing shortage is a key factor driving the problems with affordability.
Since many first time buyers need family help “what does that mean for American families that don’t have deep pockets,” he told reporters.
Yun said he expects home building to accelerate modestly in 2020, which will “open up a chain reaction in existing home sales.”
He predicted a four percent uptick in home sales next year.
The report also showed that more buyers are waiting longer before buying their first home — the median age hit 33 for the first time — and an increasing number are joining forces with friends rather than partners or spouses in order to be able to afford a place in their desired location, the report showed.
There is “a growing share of people who are embracing homeownership through unique means, purchasing with a non-romantic partner,” Lautz said.
About one in 10 home buyers purchased a multigenerational home, to take care of aging parents, because of adult children returned home, and for cost-savings, the report showed.
First-time homebuyers held steady at 33 percent of all buyers, a measure that for the past eight years has been below the historic norm of 40 percent.
Photo AFP/File / JOE RAEDLE
‘Disease fanboy’: Internet slams NBC conservative for ‘rooting for pandemic’ to distract from Trump impeachment trial
Hugh Hewitt is once again under fire, this time for almost appearing to be glad a deadly SARS-related virus has been diagnosed in a patient in Washington state – saying additional diagnoses will take the focus away from the Senate's historic impeachment trial. Hewitt is a conservative Washington Post columnist, radio host, MSNBC and NBC contributor, and law professor who went from being a "Never-Trumper" to all-in for President Donald Trump.
"People care much more for their health than theater," said Hewitt via Twitter, referring to Trump's impeachment trial. The SARS-related virus, known as the Wuhan coronavirus, is named for an area of China where it was first found. It "has infected more than 300 people and killed six in an outbreak that has struck China, Thailand, South Korea, Japan and now the US," CNN reports.
Greece elects first woman president
Greece's parliament on Wednesday elected the first woman president in the country's history, a senior judge with an expertise in environmental and constitutional law.
A cross-party majority of 261 MPs voted in favour of 63-year-old Ekaterini Sakellaropoulou, parliament chief Costas Tassoulas said.
"Ekaterini Sakellaropoulou has been elected president of the republic," Tassoulas said.The new president, until now the head of Greece's top administrative court, the Council of State, will take her oath of office on March 13, he added.
The daughter of a Supreme Court judge, Sakellaropoulou completed postgraduate studies at Paris's Sorbonne university.
I spent MLK Day reading Stephen Miller’s racist emails — here’s why
Dr. Martin Luther King Jr. is in the pantheon of American heroes. He is honored with a national holiday. For those of us who write about American politics, life and society it is expected – rightly or wrongly – that on King's designated holiday we offer a comment, essay or some other thought about his legacy.
The expectation is even greater for black Americans and other nonwhites. Brother King was and is a gift to all Americans — and, yes, the world — but black people are the most direct beneficiaries of his struggle.
Every year brings more writing about King's legacy and the work which remains. Interviews and talks will be given. Brother King will be quoted. The "I Have a Dream Speech" and the March on Washington will be obsessively referenced by the mass media and others. Of course, the "Jobs and Freedom" part of the march will be left out.