Home Sweet Home: Study Says Minorities Dominate U.S. Home Sales
Just four years ago during the housing crisis, minority homeowners were more likely to have their homes foreclosed than white homeowners. But now minorities are pushing homes sales numbers up in the United States.
In fact, according to a new study, minorities will account for more than one-third of U.S. households by 2025 and make up nearly half of first-time homebuyers. The study by the Joint Center for Housing Studies of Harvard University estimated the number of households currently stands at slightly more than 122 million. It will increase by something in the range of 11.6 million and 13.2 million between 2015 and 2025, reports The Huffington Post. And by 2025, 36 percent of households will be headed by minorities, an increase from about 31.6 percent in 2013.
Almost half will be in the 25-34 age bracket and first-time buyers. But the study warned all of this depends on mortgage availability, which can be difficult for lower-income minorities.
Still, from 1993 and 2013, according to the study, the number of white first-time homebuyers dropped significantly from 86 percent to 77 percent. The Hispanic share, meanwhile, increased from 4 percent to 9 percent, and the “Asian/Other” share jumped from a low 2 percent to 6 percent.
The study also projects a shift into homeownership from millennials, many of whom have chosen to continue to live with their parents despite earning an income. This move by millennials plays into America’s 18-year-low homeownership rate.
“But millennials, more racially diverse than previous generations, will also be behind the diversification of households,” reports NBC. The study says “45% [of millenials] are minorities, compared with 41% of gen-Xers and 28% of baby boomers. On the strength of their numbers alone, millenials will increase the racial and ethnic diversity of US households.”