Despite rising homeownership rates, large racial gaps remain in NC, US, report says

After homeownership rates dipped across the board the year before, Black households saw the greatest year-over-year increase among all races in 2023, a new report from the National Association of Realtors (NAR) says.

Nationally, Black homeowner rates rose to 44.7% — up .6 percentage points from 2022, according to NAR’s 2025 Snapshot of Race and Home Buying in America.

In another snapshot, rates across all racial and ethnic groups surged over the last decade, up 1.7 percentage points from 63.5% in 2013 to 65.2% in 2023, the report showed.

North Carolina followed similar trends. However, the overall homeownership rate “doesn’t tell the full story,” said Jessica Lautz, NAR deputy chief economist and vice president of research.

Despite recording the largest year-over-year gains, most Black households, both nationally and in North Carolina, still rent rather than own their homes — and the gap between Black and white homeownership rates has widened, up a percentage point from 27% in 2013 to 28% in 2023, she said.

Overall Black homeownership rates remain under 45%, substantially lower than any other group.

Nationwide, the white homeownership rate rose to 72.4% in 2023, up .1 percentage points from the year before. The rate for Asian Americans rose to 63.4%, up .1 percentage points, while the rate for Hispanic Americans rose to 51%, up .1 percentage points.

NAR relies on the U.S. Census Bureau’s American Community Survey for data on population and housing characteristics, calculating how various factors, including demographics, affordability, and financing access, affect homeownership among different racial and ethnic groups.

Here’s a closer look at emerging trends using NAR research and insights from local experts.

Black homeownership sees gains but still trails behind other groups.

Between 2013 and 2023, the Black homeownership rate increased by 2.8 percentage points or nearly 1.2 million people.

Percentages ranged from 10% to 58%. Mississippi, Delaware and South Carolina had the highest rates for Black Americans. At the other end, North Dakota, Montana and Maine had the lowest.

In North Carolina, it stood at 47.6% in 2023, up half a percentage point from 2022, and higher than the national rate of 44.7%. (All other racial and ethnic groups in the state saw a slight decrease from the previous year.)

What’s behind the bump?

“Incentives, increased resources, and community support,” said Tammie Harris, who runs her own eponymous brokerage firm in North Raleigh and Franklinton.

She credited financing incentives like buy-down mortgages and down-payment assistance programs for driving the growth. She’s also seeing an increase in the number of Black real estate agents and brokers, offering more workshops on financial literacy and credit improvement.

But “substantial systemic challenges remain,” she added. “Let’s face it — we still have barriers such as discriminatory lending practices, lower average credit scores and wealth disparities. It affects everything.”

The report said Black homeowners experience higher housing cost burdens in 39 states, on average spending more than 30% of their income on housing costs. In North Carolina, it’s slightly lower at 29%.

“It’s a painful reminder of how little progress has actually been made through the years,” said Derrick Thornton, a broker-in-charge with Coldwell Banker Advantage in Durham. He’s also a board member of Raleigh Regional Association of Realtors.

“It’s going to be an uphill climb for people to put themselves in a financial position to purchase a home if they’re already weighed down with record-high debt payments,” he said.

Hispanic households see biggest boost since 2013

Nationwide, Hispanic households have experienced the largest gains in homeownership rates, rising from 45.2% in 2013 to 51% in 2023 — a jump of nearly six percentage points, the report said.

The surge represents over 3.5 million Hispanic Americans on the market.

The homeownership rate for Hispanic Americans varied from 26% to 67% across the country in 2023. New Mexico, Vermont and Michigan were the states with the highest rates for Hispanic Americans in 2023.

North Dakota, New York and the District of Columbia had the lowest rates.

In North Carolina, it stood at 51.8% in 2023, down half a percentage point from 2022, but higher than the national average of 51%.

Maya Galletta, a Raleigh-based Realtor with RE/MAX Legacy Realty Partners, said she sees positive gains trickling down to the Triangle.

“The Hispanic population has seen increased income and lending products that have opened up doors,” she said.

But hurdles remain, said Jon McBride, a Realtor at Coldwell Banker Howard Perry Walston in Raleigh.

He pointed to the report’s finding that Black and Hispanic mortgage applicants in the state are denied far more often than White and Asian applicants: 21% of Black applicants are rejected as are 14% of Hispanic applicants. But only 9% of white applicants are rejected and 7% of Asians.

“Affordability tops the challenges,” he said, noting that Triangle median-home prices hit $385,000 in early 2025. Black and Hispanic incomes are lagging behind. Rising insurance costs only add to the pressure, he said. “Local efforts like Durham’s Affordable Housing Task Force push for fair lending and more housing stock, but much work remains.”

White homeownership grows while number of households declines

White homeownership has also increased — up 3.6 percentage points, from 68.8% in 2013 to 72.4% in 2023, the report said.

That translates to about 702,200 additional White homeowners. Meanwhile, the overall number of White households declined by about 3.4 million during this period, the report noted.

“The decrease was primarily among White renter households, which dropped substantially by nearly 15 percentage points, while the number of White homeowners increased,” the report said.

The rate for White Americans ranged from 48% to 81% across the country. Delaware, Mississippi and South Carolina had the highest rates. The District of Columbia, Hawaii and California had the lowest rates.

In North Carolina, the rate was 74.1%, down half a percentage point from the year before, but higher than the national average of 72.4%.

“Across all demographics, there’s a growing awareness of real estate as a valuable asset and its role in building wealth,” said Koren Bowman, founder of KU Real Estate Group in Raleigh. “More individuals are recognizing how it can positively impact their net worth.”

Asian homeownership rate declines in NC

In 2023, the homeownership rate for Asian Americans ranged from 30% to 75% across the country. Hawaii, Florida and Maryland were the states with the highest rates.

North Dakota, the District of Columbia and West Virginia had the lowest.

In North Carolina, the homeownership rate for Asian Americans stood at 67.3%, down two and a half percentage points from the year before, but well above the national average of 63.4%.

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