Fannie Mae today released another installment of its 2010 Own-Rent Analysis and according to the study, all racial and ethnic groups polled, as well as immigrants, strongly aspire to own a home, despite current disparities in homeownership rates for these groups. Additionally, if personal finances improve for these groups as they continue to grow in number, homeownership rate disparities may not persist.
“Our study gives us reason to believe that the homeownership rates for ethnic groups and immigrants will be higher than indicated solely by the projected growth of the racial and demographic population,” said Doug Duncan, Fannie Mae Vice President and Chief Economist.
The Fannie Mae Analysis is based on extensive primary research with homeowners and renters, U.S. Census Bureau data, and micro- and macro- economic parameters, and explores the factors influencing consumers’ decisions to buy or rent a home.
Overview of Key Findings:
• First generation immigrants and minorities are more likely to be living in multifamily housing and more likely to want to own these units.
• Among all sub-groups surveyed, African Americans are most likely to rent their homes; 52 percent of African Americans rent, compared to 41 percent of first-generation immigrants, 38 percent of Hispanics, and 25 percent of whites. Homeownership rates converge regardless of race, ethnicity, and immigration status among people with higher incomes. And for immigrants, homeownership also increases with tenure in the U.S.
• According to U.S. Census Bureau data, among ethnic groups, non-Hispanic whites currently have the highest rate of homeownership at 76 percent, compared to 51 percent for white Hispanics, 47 percents for non-Hispanic blacks, and 34 percent for black Hispanics. 53 percent for Hispanics.
• Immigrants also tend to have lower homeownership rates but the gap quickly narrows over time as tenure in the U.S. increases
* Sixty-six percent of respondents say they believe that housing is a safe investment — as safe as an IRA or a 401(k) plan.
• More than half say they believe that owning is a good idea, even if they plan to stay in the home less than three years.
• Eighty-six percent identify tax benefits as a reason to buy, even though tax benefits are small or non-existent for many homeowners