Report: Only 6% of Black and Hispanic Renting Households Can Afford to Buy in Colorado
Key Highlights
- In Colorado, the homeownership rate was 70% for White Americans in 2022, followed by 42% for Black Americans, 65% for Asian Americans and 57% for Hispanic Americans.
- the share of Colorado renter households that can afford to buy the typical home is 10% for White Americans, 6% for Black Americans, 15% for Asian Americans, and 6% for Hispanic Americans, further highlighting the affordability challenges faced by most Coloradans who aim to purchase a home.
- The maximum price of homes that renters can afford to purchase by race was $255,210 for White Americans, $178,770 for Black Americans, $319,070 for Asian Americans, and $219,510 for Hispanic Americans. With a statewide median price of $555,000 for all property types, homeownership is out of reach for most renters with black and Hispanic renters at the biggest disadvantage on affordability.
- REALTORS® are tackling housing affordability challenges by advocating that all levels of government support the construction of housing that is affordable for the typical consumer.
The 2024 Snapshot of Race and Home Buying in America delves into homeownership trends within each racial group and explores obstacles encountered in the pursuit of homeownership. It investigates homeownership disparities among racial groups by state to provide insights into the challenges consumers face particular to each state’s housing market. Leveraging NAR’s 2023 Profile of Home Buyers and Sellers data, the report also explores the demographics of home buyers, motivations for purchasing, types of properties acquired and financial profiles – specifically focusing on racial distinctions.
NAR and CAR advocate for polices to help close the racial homeownership gap, such as down payment assistance, alternative credit scoring and the use of special purpose credit programs.
“CAR believes every individual should have accessible, attainable, and available housing,” said CAR President Jason Witt. “Our communities benefit significantly from home ownership as, of course, do the individuals and families who can achieve positive impacts for generations to come by building generational wealth.”