Housing Affordability Varies By Race, Ethnicity

Washington, DC, May 11, 2011 -- Housing is far more affordable for Asians and Whites than other ethnic groups, according to new data released by the National Association of Home Builders.

The quarterly NAHB/Wells Fargo Housing Opportunity Index, which measures housing affordability in metropolitan areas nationwide, was broken down for the first time in its history to analyze the differences in income and housing affordability in 2010 across five different races/ethnic groups.
 
The index for all races/ethnic groups combined was 72.8 in 2010, meaning that 72.8 percent of all homes sold in the U.S. last year were affordable to families earning the national median income of $64,400.
 
In comparison, median family income was $69,000 for Whites, $42,300 for Blacks, $44,100 for Hispanics, $80,500 for Asians, and $43,200 for American Indians/Alaska Natives.

Thus, 80.3 percent of homes sold in 2010 were affordable to White families earning the group’s median income, compared to 53.0 percent for Blacks, 51.0 percent for Hispanics, 76.4 for Asians, and 58.7 for American Indian/Alaska Natives.