It’s very difficult to argue with the statistics: inequality in the U.S. is on the rise. The 'American Dream' — the one with the nice suburban house with the white picket fence, a couple of kids, and an easily payable mortgage — appears to be sliding further away from minorities, according to a new report by rental search firm Abodo Apartments.
Looking at the country as a whole, 71.3 percent of white Americans own homes, while only 41 percent of black Americans own a home, according to the latest U.S. Census numbers analyzed by Abodo. The study also looked at other minority groups including Hispanic-Americans and Asian-Americans and found similar, albeit smaller, disparities.
But what about Texas? Good news — San Antonio ranks No.1 among the largest U.S. cities for minority homeownership. In San Antonio, 55.2 percent of minorities own homes while 44.8 percent of minorities are renters.
When it comes to saving for a down payment, it would take minorities in San Antonio – based on a formula compiled by ABODO – eight years to save for a down payment. And surprisingly, when compared to other large cities in the U.S., this is not a long time. For example, in San Jose, California it would take a minority 56.7 years (yes, years) to save for a down payment. Home prices in that city are among the highest in the nation right now, but either way, that’s a long time to wait to own a home.
Interestingly, many minorities are seeking alternative home financing methods. One example is a contract for deed method, widely popular in the Midwest. Other methods for creative home financing include two-step mortgages, family loans, securities-back loans, and more.
Outside of San Antonio, Houston ranks fifth among large cities for minority homeowners with 50.2 percent, Austin ranks 11th among the largest cities for minority homeownership rates, with 48 percent owning homes, and Dallas ranks 15th with 47.4 percent minority homeowners.
That’s all good news, seeing as many major cities like New York City, Boston, Cleveland, San Diego, and Los Angeles ranked far lower, according to the report. In Texas, equal opportunity is on the rise in the housing department, a trend we hope continues throughout 2018.