PHOENIX — With its rapidly growing population and home values at one time far below neighboring California, Arizona has been an attractive place to look for the homeownership part of the American dream.
The National Association of Realtors Snapshot of Race and Home Buying in America report shows homeownership rates have been increasing for all Americans in major racial and ethnic census categories. Even with the increase, however, disparities in growth do exist as well as challenges to home affordability.
According to their data, about two-thirds of households in Arizona live in an owner-occupied structure. For households led by Arizonans in the “White, Non-Hispanic” ethnic category, the figure is closer to three in four. Asian-led households have a homeownership rate of 67% and Hispanic households, 59%. Black-led households lag at 41%.
All but one of the census racial/ethnic groups experienced rising homeownership rates in Arizona between 2012 and 2022. While households trended up five points, Black households increased by seven, and Hispanics by eight. Asian households saw the largest rate increase with eleven points. Native American homeownership rates were about the same in 2012 as they were in 2022, holding at about 57%.
The report also touched on home affordability challenges that exist and are slightly different for each group. About one in five white and Asian households report spending more than 30% of their household income on housing expenses. For Hispanic and Black households, it’s closer to one in four.
Other potential financial hurdles include mortgage denial rates which are higher for Black and Hispanic households compared to white and Asian led ones. Student loan debt is another one. Black households led all groups here with 41% reporting an existing student loan. The median balance of student loans was $46,000 for black households as opposed to $30,000 for white.
A big problem in Arizona is buying power. In 2022, when the census survey was conducted the median home value in the state was $402,000. According to the Realtor’s data, the maximum home price renters could afford in all racial and ethnic groups ranged from $200,000 to $240,000.
