There are many factors to consider when homebuying, including where to put down roots.
That can be particularly important for people of color. Data show that by 2040, 12.4% of Black renter households won’t become homeowners. By comparison, 3.5% of white homeowners will miss out on homeownership. The number is 4.1% for Asian and other households and 0.2% for Hispanic households, according to the Urban Institute.
Recently, United Way of the National Capital Area evaluated six factors to determine the states that are best and worst for house-hunting people of color. The factors were: median household income, unemployment rate, total homeownership rate, number of first-time homebuyer grants and loan programs, the number of Department of Housing and Urban Development loans for Federal Housing Administration purchases and the number of Department of Housing and Urban Development loans for Federal Housing Administration refinances.
Median household income and the unemployment rate were an average of Black and Latino data. Total homeownership rate included all races.
“Each of the six ranking factors was graded on a five-point scale, with a score of five representing the most favorable conditions. We determined each state’s score from the total of its individual factor scores, which were weighted according to their impact on homeownership opportunities for BIPOC. The sum of these weights is 10, which creates a total possible city score of 50,” the nonprofit explained in its methodology. BIPOC is Black, Indigenous and people of color.
HUD, the U.S. Census Bureau, the U.S. Bureau of Labor Statistics and FHA.com were among the sources.
Thanks mostly to the high annual incomes and low unemployment rates for people of color, Maryland is the No. 1 state for homeowners. Still, Georgia was among the best.
The Peach State came in at No. 10 with a 27.96 state score.
“Georgia landed in the 10th spot in the ranking with a lower-than-average unemployment rate of 7.7% and 3,038 FHA loans filed,” United Way of the National Capital Area’s website said of the findings. “Notably, certain cities in Georgia have some of the lowest racial homeownership gaps in the country. At 21.7%, Augusta, Georgia has the fifth smallest gap in the U.S. between white homeownership rates and Black homeownership rates, according to Urban Institute data. Columbus, George and Atlanta, Georgia both have comparably small gaps as well, with 22.5% and 29.6% respectively.”
Credit: United Way of the National Capital Area
Credit: United Way of the National Capital Area
About the Author
