Despite coming out of arguably the best two years in residential real estate, the path toward homeownership remains laden with its share of challenges for buyers, according to a new report by the National Association of REALTORS® (NAR).
NAR released its 2022 Obstacles to Home Buying on April 12, which dove into some of the current obstacles to homebuying broken down by race/ethnicity.
The report polled approximately 2,000 “potential” and “successful” homebuyers and found that challenges regarding lack of affordable homes, a lack of homes that fit their criteria, competing with multiple offers, and saving for a down payment were the most prominent hurdles across the board.
Respondents—particularly Black and Hispanic buyers—also reported experiencing discrimination during the homebuying process that made achieving homeownership difficult.
Key findings:
- Among potential buyers, Asian respondents (55%) were more likely than White (42%), Hispanic (45%) or Black (39%) respondents to say a lack of affordable homes was a primary obstacle to buying a home.
- The second-ranking obstacle faced among potential Hispanic buyers was a difficulty saving for a down payment at 32%.
- The second-ranking obstacle faced by potential Black home buyers was lack of credit or credit issues were the second-highest concern.
- The second-ranking obstacle for White and Asian potential buyers was a lack of homes that fit their criteria—32% and 47%, respectively.
- Approximately three-quarters of potential homebuyers say they are currently planning to save for a down payment, and most say it will take between six months and three years to save.
- Successful Asian buyers (51%) were more likely than White (32%), Hispanic (35%) or Black (33%) successful buyers to say a lack of affordable homes was an obstacle in their home purchase.
- The second-biggest obstacle for White and Asian buyers faced was competing with multiple offers, while for Black buyers, it was finding neighborhoods in which the buyers were comfortable.
- More than one-third of potential Black buyers say they faced discrimination during the home buying process due to their race/ethnicity (38%) and skin color (36%).
- Forty-four percent of potential Black buyers say they have not been shown all available homes in their price range due to discrimination based on race or skin color compared with 33% of Hispanic and 27% of Asian respondents.
- Hispanic and Black successful homebuyers are more likely than successful homebuyers of other races/ethnicities to say they faced discrimination based on race/ethnicity (34% and 36%, respectively) and skin color (33% and 35%, respectively).
The takeaway:
“Record-high home prices and record-low inventory have made the homebuying process exceedingly difficult,” said Dr. Jessica Lautz, NAR vice president of demographics and behavioral insights. “Our new study shows that while the inventory crisis is affecting potential buyers of every race, nearly all home buyers agree that homeownership is still an important part of the American Dream.”
“In the current hot market, people who have traditionally enjoyed homeownership can capitalize on those gains to realize new opportunities. Meanwhile, the market becomes increasingly unaffordable, and the obstacles greater, for those trying to enter the market,” said Bryan Greene, NAR vice president of policy advocacy. “NAR advocates not only for existing homeowners, but also for those aspiring homeowners whose entrance into the market is necessary for the economy to thrive.”
is RISMedia’s associate online editor. Email him with your real estate news ideas at jgrice@rismedia.com.
