According to the April 2023 National Association of Realtors (NAR) study Wealth Gains by Income and Racial/Ethnic Group, a typical homeowners wealth is as much as 40x greater than a renters. A vital part of wealth accumulation for most, home ownership is a key milestone on the path to achieving the American dream.
74.4% of non-Hispanic White households own homes, while just 45% of black HHs own a home. Since 2016, those individuals under 35 saw the greatest increase in home ownership.
We learned in November from our Income in the U.S. post:
“The median income of some 131mm households in America is $70,784… Looking at the data by race, half of 102mm white HHs earn more than $74k, while that number for 17mm black HHs is just $48k. Earning potential appears to be heavily dependent on educational attainment as the median of some 49mm HHs who have earned a bachelors or higher is $115k. It is worth noting as individuals approach the age segment of 25-34 earnings seem to accelerate then plateau somewhere in the $90k area.”
We encourage you to read the commentary from NAR President Kenny Parcel, How prospective first-time homebuyers can succeed in today’s real estate market. To highlight some key data points:
First time home buyers made up 26% of the market in 2022
The average first time homebuyer is 36, oldest age recorded
The average annual income needed in order to afford a home is $90,000
According to the above survey from MoneyWise most Gen Y and Zers struggled to define home buying terms.
Join us August 24th at 7pm as we offer first time homebuyers resources for navigating a challenging market, highlight down payment assistance programs and discuss where there may be opportunities to take the leap into homeownership.
