All things are not equal when it comes to home sales.
A new report out from Realtor.com finds that LGBTQ+ and BIPOC buyers feel the burden of housing affordability at greater levels than white and non-LGBTQ+ buyers. According to the new survey that LGBTQ+ and BIPOC buyers are more likely to put smaller down payments on a home, with nearly two-thirds putting down 20 percent or less of a home’s purchase price when buying compared to about half of white, non-LGBTQ+ buyers.
Those smaller down payments mean higher mortgage payments, already complicated by the fact that the survey found that LGBTQ+ and BIPOC buyers face challenges during the mortgage process, and are 1.7 times more likely to have been denied mortgages two or more times.
LGBTQ+ and BIPOC buyers were also nearly 9 percent more likely to pay over a home’s asking price to get their offer accepted—86 percent paid over-asking compared to 79 percent of white and non-LGBTQ+ individuals.
More Americans than ever before are stretched thin because of the growing housing cost burden, but our data shows that LGBTQ+ and BIPOC buyers are potentially spending even more of their income to own a home of their own, which can make it difficult to afford other essentials like food and transportation and creates even greater inequalities,” said Laura Eddy, Realtor.com vice president, Research and Insights. “With the rising costs of homeownership taking a greater toll on budgets, resources like down payment assistance can help reduce the overall financial burden of buying a home and make it more accessible to a wider range of individuals.”