the agnostic investor

Written by Taraje Williams-Murray, CEO of Coroebus Wealth Management

financial planning and investment management simplified

Homeownership in the U.S.

According to the April 2023 National Association of Realtors (NAR) study Wealth Gains by Income and Racial/Ethnic Group, a typical homeowners wealth is as much as 40x greater than a renters. A vital part of wealth accumulation for most, home ownership is a key milestone on the path to achieving the American dream.

74.4% of non-Hispanic White households own homes, while just 45% of black HHs own a home. Since 2016, those individuals under 35 saw the greatest increase in home ownership.

We learned in November from our Income in the U.S. post:

“The median income of some 131mm households in America is $70,784… Looking at the data by race, half of 102mm white HHs earn more than $74k, while that number for 17mm black HHs is just $48k. Earning potential appears to be heavily dependent on educational attainment as the median of some 49mm HHs who have earned a bachelors or higher is $115k. It is worth noting as individuals approach the age segment of 25-34 earnings seem to accelerate then plateau somewhere in the $90k area.”

We encourage you to read the commentary from NAR President Kenny Parcel, How prospective first-time homebuyers can succeed in today’s real estate market. To highlight some key data points:

First time home buyers made up 26% of the market in 2022
The average first time homebuyer is 36, oldest age recorded
The average annual income needed in order to afford a home is $90,000

According to the above survey from MoneyWise most Gen Y and Zers struggled to define home buying terms.

Join us August 24th at 7pm as we offer first time homebuyers resources for navigating a challenging market, highlight down payment assistance programs and discuss where there may be opportunities to take the leap into homeownership.

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