On Wednesday, June 17, NAR’s Chief Economist Lawrence Yun commented on how to close the gap in homeownership rates between whites and African- Americans.
To combat race inequality in the real estate industry, Yun released a five-step plan that would increase African-American homeownership and close the gap. This plan includes:
- Increase home inventory by building more homes. The lack of options to move from renting to buying is causing an aversion for those who actually want to buy.
- Build more homes in Opportunity Zones to help the growth of these economically-distressed areas.
- Increase access to down payment assistance from the federal government. As saving for a down payment is one of the biggest deterrents for renters to become buyers, providing down payment assistance to a certain income threshold would help increase homeownership.
- Strengthening FHA loan programs could lower mortgage insurance premiums and monthly mortgage payments.
- Creating more positive credit payment histories, such as rent and utilities to demonstrate financial responsibility, can help increase homeownership opportunities for African-Americans and first-time buyers.
To read the full press release, click here.