The National Association of Realtors has released its 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report, which surveyed White, Hispanic/Latino(a), Black and Asian prospective home buyers about their experiences. Among the findings, high prices and mortgage rates hinder all groups, while one in six prospective home buyers across races and ethnicities report facing discrimination.
Despite all of this, most discrimination during the homebuying process goes unreported, with 47-81 percent who describe it did not report it to a government agency or legal aid organization.
Among prospective home buyers, Asian (27 percent), Hispanic (24 percent), Black (20 percent) and White (15 percent) respondents say the main reason they have not yet bought a home is because they are waiting for prices to drop. Some 15 percent of White respondents are just as likely to say it is because they are waiting for mortgage rates to drop.
“Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.”
Additional market-related reasons that prospective home buyers cite as barriers include not enough available homes within their budget (19-24 percent of all four groups).
In terms of what holds them back from saving for a sufficient down payment, NAR found that prospective home buyers across races and ethnicities cite as barriers current rent/mortgage payments (43-56 percent of all four groups) and credit card payments (38-57 percent of all four groups). Additionally, awareness about existing down payment assistance programs is low among prospective buyers. Only 8-15 percent of all four groups applied for these programs, 20-33 percent considered but did not apply to these programs, 21-32 percent did not consider these programs, and one-third say that they are not aware of these assistance programs.