WASHINGTON, DC — The lack of affordable homes is the leading obstacle for potential home buyers of all races, but other obstacles to homeownership vary by race and ethnicity according to a new report by the National Association of Realtors (NAR).
The report, produced in partnership between the NAR and Morning Consult, compares the experiences of both potential and successful home buyers across races and ethnicities. The greatest challenges identified are a lack of affordable homes, a lack of homes that fit buyers’ criteria, competing with multiple offers, and saving for a down payment.
“Record-high home prices and record-low inventory have made the homebuying process exceedingly difficult,” said Dr. Jessica Lautz, v.p./demographics and behavioral insights for the Washington, DC-based NAR. “Our 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,” said Bryan Greene, NAR v.p./policy advocacy. “Meanwhile, the market becomes increasingly unaffordable, and the obstacles greater, for those trying to enter the market.”
Approximately three-quarters of potential home buyers are currently planning to save for a down payment, which most noted will take between six months and three years, the NAR report found.