Minority Households Face Housing Affordability Challenges
New NAHB analysis on housing affordability based on race and ethnicity shows a wide disparity regarding the number of households that can afford a new median priced home.
At the national level, the share of Black households that are able to afford a new home is substantially lower than the share of non-Hispanic white households. Only 24% of Black households are able to afford the median new U.S. price of $346,577. Among non-Hispanic white households, 44% have sufficient income to qualify for a mortgage for a new median priced home under standard underwriting criteria, compared to 56% of Asian households and 32% of Hispanic households.
The number of households being priced out of the market because of a $1,000 price increase varies among different racial/ethnic groups, but is more or less proportional to population size. The largest priced-out number as a result of a $1,000 price increase is 106,278 for non-Hispanic white households, which accounts for around 67% of total U.S. households.
By contrast, the number of Black and Hispanic households that would be priced out the market because of a $1,000 price hike are 15,840 and 21,376, respectively.
The affordability gap between non-Hispanic white households and minority households is persistent across all states, and is reflected by broad wage disparities. According to the 2019 American Community Survey, the median household income for non-Hispanic white households was $71,664, significantly higher than the $43,862 median household income for Black households.
Thirty percent of Black households have household income below $25,000, compared with 15.5% of non-Hispanic white households. Around 17.6% of non-Hispanic white households earn more than $150,000, while only 7% of Black households do.
NAHB economists Na Zhao provides more analysis in this Eye on Housing blog post.
Latest from NAHBNow
May 09, 2025
How CertainTeed One Precision Assemblies Accelerates Construction with Factory-Built PrecisionWith the demand for housing in today’s fast-paced construction environment, time is money — and quality is everything. That’s why more developers, general contractors, and home builders are turning to offsite construction solutions like CertainTeed One Precision Assemblies.
May 08, 2025
How an NAHB Student Chapter Alumnus Found His Residential Construction PassionLawrence Thompson III's eye for design and architecture led him to NAHB's Student Competition. Now the project manager is working a full-time job that fits his skills and passions.
Latest Economic News
May 09, 2025
Consumer Credit Slows in the First Quarter of 2025Consumer credit continued to rise in early 2025, but the pace of growth has slowed. Student loan balances rose year-over-year as borrowers resumed payments following the end of pandemic-era relief. However, growth remains modest.
May 08, 2025
Multifamily Developer Confidence Falls in the First QuarterMultifamily developers are starting the year in a cautious state, according to Q1 2025 results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices.
May 07, 2025
Fed Remains on Pause with Rising UncertaintyThe Federal Reserve remained on pause with respect to rate cuts at the conclusion of its May meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. Characterizing current market conditions, the central bank noted that the “unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, the Fed noted that “inflation remains somewhat elevated.”