The percentage of Black and Latino buyers who could afford to purchase a median-priced single-family home in California in 2020 was 19% and 20%, respectively, compared to 38% for white households and 43% for Asian buyers, according to a report released Wednesday by the California Association of Realtors.
“The wide affordability gap in California between whites and people of color demonstrates the legacy of systemic racism in housing, which has created inequities in homeownership rates across these communities,” said CAR President Dave Walsh.
“Closing the homeownership gap is essential to closing the generational wealth gap in our country, and that’s why CAR is committed to addressing barriers and disparities to make equity in housing and access to affordable homes a reality for all people,” he said.
According to the Census Bureau’s American Community Survey, the 2019 homeownership rate in California was 63.2% for whites, 60.2% for Asians, 44.1% for Latinos and 36.8% for Blacks.
According to CAR’s Housing Affordability Index, a minimum annual income of $122,800 was needed to qualify for the purchase of a $659,380 statewide median-priced, existing single-family home in 2020. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,070, assuming a 20% down payment and an effective composite interest rate of 3.30%.
The 2020 California median income for whites was $94,390; $107,100 for Asians; $65,510 for Latinos; and $56,820 for Blacks, according to CAR.
The affordability gap was especially stark in expensive counties like San Francisco, where a median-priced home of $1.65 million was only affordable for 8% of Black households, 15% of Latino households and 22% of Asian households compared to 35% of white households, CAR reported.
Compared with California, 42% of the nation’s Black households could afford to purchase a $299,900 median-priced home in 2020, which required a minimum annual income of $55,600 to make monthly payments of $1,390, while 62% of white households could afford the same home.
Of the major regions for which CAR tracks affordability by ethnicity, the affordability gap between Black and white households in 2020 was the greatest in San Francisco County with a differential of 27%. Even in relatively affordable areas such as Fresno and Sacramento counties, the affordability differential between Black and white households was high at 23% and 22%, respectively.
For Latino households, the affordability gap was the greatest in Santa Clara (21% gap) and San Francisco, San Mateo and Los Angeles counties (all at 20%). At an affordability index of 8%, San Francisco County was the least affordable for Black households, and San Bernardino County was the most affordable at 46%.
The least affordable county in 2020 for Latino homebuyers was Santa Clara County, and the most affordable was San Bernardino County at 54%. For white households, Orange County was the least affordable, with 29% of households earning the minimum income required, while Fresno was the most affordable at 61%.
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reform says
Racism permeates this society. White Americans persecuting Asian immigrants, even segregation in schools, beatings, and other horrific treatment. Internment camps for Japanese Americans, taking their possessions. The same treatment happens with blacks and Latino’s. White men and women throughout history justifying their superiority in order to abuse others verbally and physically won’t end anytime soon because they think they’re right, not realizing their disease of ignorance and morbid behavior.
Donny McGee says
Shut up! When were you last a slave in chains?
Never!
You need to find Larry Elder’s testimony yesterday before a congressional committee on Reparations.
Find it, play it, listen to it.
reform says
I don’t agree with Larry Elder. I don’t get information from either Republicans or Democrats, because they do nothing but tear each other apart. History and what is going on in the present has not changed due to racist mind-sets. Hatred toward Asians, Jews, and any skin color that isn’t white permeates this society and we’re getting exactly what we deserve. There are even many black people that think white people are devils, so you see, we’re coming undone.
Mike P. says
Some really harsh truths here, so get ready…
A lot of this has to do with future/time orientation and foresight. The smarter people plan their lives, they ask questions, they factor in the “what if” scenarios. They take sound advice from experienced people and learn from them. These people do what they can to find mates, to play their careers, go to college and live within their means.
The problem is that a lot of other people don’t do any of those things: They don’t plan ahead, they don’t make good life choices, they don’t ask questions from experienced people and learn from them.
The latter group of people are focused on the “here and now” and have no future/time orientation or sense of foresight. As harsh as it might sound, it’s better to save your money and resources so that you’re able to buy a condominium and get into the housing market, than to use every single paycheck you get to buy a new gold chain at the jewelry store, to get new rims on your car, or on $300 shoes.
It’s also better to find a mate, stick with that person, rather than bed hop and think being a “player” is somehow an admirable way to live. It’s not. It just complicated your life a lot more and creates tons of problems.
These aren’t easy pills to swallow, but they explain a lot.
Willy Brown says
Consider the source. This illegitimate construct is solely Walsh’s interpretation. I don’t care if he is president of the California Association of Realtors, but it’s more telling that he works with Lofgren who is one of the most leftist liberal hacks in the State.
I don’t either of them and I certainly reject his narrative.
Ron says
Maybe Education has something to do with it. Not race. Its about studying and having a high skill job. Behavior and work ethics have alot to do with it.
I am says
Ron you took the words out of my mouth. The inability of either blacks or latinos to afford a near $700,000 house is not the legacy of racism. I know hundreds of whites who can’t qualify for that loan amount either. That notion is pure “critical race theory” bull.
If you want to be able to afford that type of property, set your goals on a career that allows you to earn a wage wherein you could achieve it.
I assure the authors of this article that education is the key. Whether it be a college or technical/industrial education or entrepreneurial endeavors, with a carefully plotted course, determination, and ambition you can achieve your goals.
.
I wish this org. – the a v times would stop spreading false norions whose only purpose is to stiffle the hopes and ambitions of thousands of blacks and latinos, as well as, attempting to inculcate in young whites a false sense of guilt and responsibility for past events that preceeded their very existence. STOP THE CRAP.
Jake says
Did you some how have a stroke and miss the term “generational wealth” ? There’s your answer. While Brody and Kaylie are inheriting six figures from Grammy and Pop pop leading to a jump start in life . Pablo and Keisha on the other hand have to work to put themselves through school since their families are poor. Both sides want the same thing , a decent life style, a good home and stability but one side clearly hold an advantage over the other. Now does your biggoted mind understand that … probably not. Oh well…
SIUYA says
The inherent fallacy is assuming that “Brody” and “Kaylie” (supposed to be white, I presume) are somehow better off. For all you know, “Brody” grew up in a trailer park with an alcoholic, sometimes-employed dad and a sick mom. “Kaylie” may have been in foster care and then went to stay with her aunt and cousins. Tragedy happens to white people too, just like good things happen to black people. As a matter of fact, I know quite a few “Pablos” here in the Antelope Valley who’s parents run successful businesses (franchises, real estate, contracting, etc), and I also know “Keishas” who’s mom got them cushy government office jobs. Mind you, Brody and Kaylie applied for those jobs too but were turned away because they didn’t know anyone and didn’t meet a specific quota.
This racial spoils system where we set aside aide for certain people while excluding others does nothing but cause bitterness and resentment.
Ron says
Well it seems Asians do quite well. Why is that? Maybe they study and have a work ethic and go to Medical School. Maybe they know how to keep their pants up and know how to behave.
Democrat Dave says
And, yet hate crimes against Asians has increased.
I don’t have to tell you about hate crimes against Blacks do I?
Jeronimo says
Asians come to the US/California with nothing, often speaking no English. Despite that, they do better than even American-born Whites when it comes to home ownership. Why is that?
Some answers:
— They plan well.
— They cooperate with each other (this is huge!)
— They save what they have and don’t splurge on things like chrome rims, gold jewelry and rip-off designer clothes and purses.
— They drive beat up cars when they have to
— They go to college, study hard, and actually finish their classes and get degrees.
— They have a good work ethic and know what it takes to get ahead.
— They mind their own business and don’t get into petty conflicts or drama in the workplace
— They are always striving to improve themselves
— They are respectful of the law and law-abiding