NAR Report Provides Snapshot of Race and Homebuying

Homeownership rates have increased across all racial and ethnic groups over the past decade, according to the National Association of Realtors® 2025 Snapshot of Race and Home Buying in America. 

In 2023, homeownership rates reached 65.2% nationwide, up from 63.5% in 2013. Pennsylvania saw a 69.6% homeownership rate in 2023. Strong demographic shifts and wage growth contributed to sustained demand and increased homeownership. 

Homeownership Trends 
However, some groups lag behind the national homeownership rate. The report shows that Black homeownership remains significantly lower than that of other groups, and the gap between Black and White homeownership rates has widened over the past decade, increasing from 27% in 2013 to 28% in 2023. 

“The gap between Black and White homeownership rates is larger than it was 10 years ago,” notes Nadia Evangelou, NAR senior economist and director of real estate research. “About 40% of potential Black homebuyers report having the highest student loan debt, and that’s one of the biggest hurdles when it comes to getting approved for a mortgage and buying a home.” 

Hispanic Americans experienced the largest gains in homeownership, rising from 45.2% in 2013 to 51% in 2023. The report notes, “This surge represents more than 3.5 million more Hispanic Americans achieving the dream of homeownership in the past decade.” The Hispanic homeownership rate was 47% in Pennsylvania in 2023. 

Asian Americans follow this trend as well, seeing a substantial increase in homeownership. Their rate rose 5.6 percentage points over the decade to 63.4% in 2023. Approximately 1.6 million more Asian households became homeowners from 2013 to 2023. In the commonwealth, the Asian homeownership rate was 63%. 

The Black homeownership rate rose by 2.8 percentage points during the same period, resulting in nearly 1.2 million more Black Americans becoming homeowners. The Black homeownership rate in Pennsylvania was 46%, slightly higher than the national rate of 44.7%. 

“Younger generations who are reaching homebuying ages are more diverse, yet despite higher mortgage rates and higher home prices, we’re seeing higher rates of homeownership in minority populations,” Evangelou says. “The 6% increase in Hispanic homeownership rates is really notable.” 

The White homeownership rate increased to 72.4% in 2023, an increase of 3.6% in the past decade. In Pennsylvania, the White homeownership rate was also higher than the national rate at 75%. 

Demographic Trends 
The NAR report reflects the demographic changes and provides suggestions about how Realtors® may use the information to increase their business opportunities. 

“This research emphasizes how the industry demographic trends apply to real estate businesses,” Evangelou explains. “The report provides a roadmap for members to understand who is entering the market, what new opportunities may be available and how to help clients transition from renters to homeowners.” 

Demographic composition varies widely by geography. The report shows that the share of households in the 25-40 age group in Pennsylvania reflects the changing demographics of potential homebuyers. In that age group, 22.1% were White, 28.6% were Black, 37% were Asian and 38.2% were Hispanic. 

The report suggests Realtors® can use this information in their businesses to: 

• Identify high-growth buyer demographics in their area. 
• Develop tailored marketing and outreach strategies once growth areas are identified. 
• Identify first-time buyer programs that may benefit Black homebuyers, many of whom are first-time buyers. 

Access to Credit 
Access to credit is another key issue that affects consumers’ ability to purchase a home. According to Home Mortgage Disclosure Act data, mortgage applications for a home purchase were denied at a rate of 21% for Black applicants and 17% for Hispanic applicants, compared to 11% for White and 9% for Asian applicants. The primary reasons applications were denied were higher debt-to-income ratio and credit history.  

In Pennsylvania, denial rates for Black and Hispanic applicants were 14%, compared to 8% for White and Asian applicants. 

“Understanding the credit and mortgage challenges that some minority homebuyers face highlights the importance of Realtors® working with lenders and identifying downpayment assistance, first-time homebuyer programs and other programs that would help buyers qualify for a home,” Evangelou adds.  

Metro Statistics 
NAR also provides statistics to help members learn more about the diversity of homebuyers in metropolitan areas throughout the country, and metro market statistics.