Industry NewsMarkets & Economy

Minority middle-class families are being priced out of homeownership: Redfin study

  • Redfin analyzed median incomes for households of different racial and ethnic backgrounds, then compared those to MLS listing prices in 30 major metro areas.
  • Middle-class homebuyers are being priced out of homes for sale across the board, but results were especially acute for black and Hispanic median-income households.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

When metro areas across the country are booming with economic growth, that should be a good thing for real estate sales -- spurring homeownership because jobs are plentiful. However, according to new research by Redfin -- "Priced Out: The Housing Affordability Gap In America's Largest Metros" -- "no metro area gets a trophy" when it comes to providing affordable homes for median-income minority homebuyers, said Redfin's chief economist, Nela Richardson. Richardson noted that affordability is a problem for median-income and middle-class homebuyers of all colors, but that the problem is particularly pronounced for Hispanic and black families. Redfin wrote in the study that home prices across the metro areas studied increased by 26 percent between 2012 and 2016, but "the median household income edged up just 1.6 percent nationally" in that same time period. So any family earning the area median income could afford 44 percent of homes for sale in 2012, but by 2016, that's dw...