Homeownership in America

Making homeownership attainable means dispelling myths, and addressing the gaps that stand in the way of everyday Americans building their wealth—and reaching their goals.

• 84% say buying a home is a top priority (Source: NerdWallet) 

A Glimpse at the Gaps

Some Americans face bigger barriers to homeownership, including:

Communities of Color 

• White
  • 74% Homeownership Rate 
  • $188K Median Household Net Worth
• Other/Multiple Races
  • 57% Homeownership Rate
  • $75K Median Household Net Worth
• Hispanic
  • 49% Homeownership Rate
  • $36K Median Household Net Worth
• Black
  • 45% Homeownership Rate
  • $24K Median Household Net Worth

(Source: Federal Reserve, Census Bureau)

Younger Generations

Homeownership Rate at age 25–34

• 37% Millennials
• 45% Gen X
• 45% Baby Boomers

(Source: Urban Institute)

Paving the Path to Down Payments

Saving for a down payment is the #1 hurdle to homeownership…

• 1 in 3 Millennial buyers say a down payment is their top obstacle to buying a home
• Millennial Roadblocks
  • Average student loan debt: 40K
  • Rising home prices:12% annually
• 10 years = the time it takes the average homebuyer to save for a 5% down payment. Saving is more difficult for communities of color.
• Years to Save 5% Down Payment, by Race and Ethnicity
  • White: 9 years
  • Hispanic: 11 years
  • Black: 14 years

(Source: Center for Responsible Lending)

…but misconceptions about down payments are common.

• The median down payment for first-time buyers is 7%
• However, the majority of Black and Hispanic buyers believe a 20% down payment is required.
• Share that believe a 20% down payment is required to buy a home across the U.S.
  • Black: 58%
  • Hispanic: 55%
  • Millennials: 21%
  • All U.S. 36%
• 70% are unaware of down payment assistance programs for middle-income buyers
• Across the U.S. there are 2,305 down payment assistance programs

(Source: Wells Fargo, NerdWallet)

Banks are committed to helping Americans become homeowners. For helpful information and consumer resources, visit aba.com/consumers.