Consumer Financial Literacy

Homeownership is the top method for Americans to build wealth in the United States (U.S.)

However, the U.S. is currently encountering a housing affordability crisis due to rising interest rates, home prices, and low housing inventory. With the lack of housing inventory and reduced affordability, first-time buyers have been reduced to historic lows. The current share of first-time buyers from the Profile of Home Buyers and Sellers is just 32%, while the historic norm among primary residence buyers is nearly 40%. Additionally, while there has been a recent rise in minority home buyers, the gap between White and Black homeownership rates sits at approximately 30 percentage points, according to A Snapshot of Race and Home Buying in America.

The research contained in this report shows an opportunity to help narrow the racial gap in homeownership and bring more first-time home buyers into the housing market. Without the knowledge of homeownership, the financial benefits of real estate, and the knowledge of loan programs to help enter homeownership, it is hard to imagine the American Dream of homeownership.

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