Hispanic homeowners narrow home value gap to smallest margin on record

Rhea-AI Summary

Recent Zillow research reveals that Hispanic homeowners have made significant progress in narrowing the home value gap with white homeowners over the past two years. The gap is now at its narrowest ever, with Hispanic-owned homes worth 11.9% less than those owned by non-Hispanic white households, down from 12.1% last year and 12.4% in December 2021.

Key findings include:

• More than two-thirds of the 100 largest metro areas saw the home value gap decrease for Hispanic homeowners over the past year.
• Hispanics represent 18% of prospective buyers but only 13% of successful purchasers.
• Hispanic borrowers face higher mortgage denial rates (18.8%) compared to non-Hispanic whites (10%).
• The home value gap for Black homeowners has also slightly narrowed to 17.7% from 17.9% over the past year.

While progress is being made, challenges remain in achieving homeownership equity for Hispanic and other minority communities.

Positive

• Hispanic-owned homes' value gap narrowed to 11.9%, the smallest margin on record
• More than two-thirds of the 100 largest metro areas saw the home value gap decrease for Hispanic homeowners
• The home value gap for Black homeowners has also slightly narrowed to 17.7% from 17.9%

Negative

• Hispanics represent 18% of prospective buyers but only 13% of successful purchasers
• Hispanic borrowers face higher mortgage denial rates (18.8%) compared to non-Hispanic whites (10%)
• Hispanic homebuyers face higher fees when purchasing a home, averaging $2,812 compared to the national average of $2,072

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SEATTLE, Oct.14 , 2024 /PRNewswire/ -- Recent Zillow® research shows Hispanic homeowners making strides in narrowing the home value gap with white homeowners over the past two years, regaining ground lost during the pandemic. The gap is now the narrowest ever observed.

Hispanic-owned homes are currently worth 11.9% less than homes owned by non-Hispanic white households, down from 12.1% last year and a recent high of 12.4% in December 2021. The gap was as wide as 18% in 2012, following the global financial crisis of 2007–2009, when many minority communities were hit especially hard, setting back progress by several years. The slow climb back continued steadily until interrupted in 2021, but the course has now been corrected.

"Homeownership stands as a cornerstone for building wealth, yet systemic barriers have unfairly hindered many people of color from acquiring homes valued comparably to those of their white counterparts," said Treh Manhertz, Zillow senior economic research scientist. "Efforts to improve access to down payment assistance, credit-building programs, zoning reforms, and affordable housing construction and preservation in desirable areas are key initiatives to help this progress continue."

More of Hispanic homeowners' wealth is typically tied up in their primary residence, relative to homeowners of other races, so home value fluctuations have an outsize effect on them. There is positive movement toward equity at the local level. More than two-thirds of the 100 largest metro areas saw the home value gap decrease for Hispanic homeowners over the past year. For example, significant reductions were observed in several large Florida markets, including Miami, Orlando and Tampa.

Several metros with larger-than-average Hispanic/white home value gaps also saw their gaps narrow. Of the 40 largest metros with gaps larger than the national average, 31 of them reduced their gap by more than the national average. Los Angeles has the largest home value gap, with 32% lower home values for Hispanic residents compared to white residents. The gap in that metro shrunk by 0.75 percentage points in the past year.

However, while gradual progress is being made in closing the gap, the jump into homeownership remains a significant hurdle for Hispanics. According to Zillow's 2024 Consumer Housing Trends Report, Hispanics represent 18% of prospective buyers, but 13% of successful purchasers. Data from the Homeowners Mortgage Disclosure Act shows that Hispanics face higher fees when purchasing a home, averaging $2,812 compared to the national average of $2,072. Mortgage denial rates are also notably higher for Hispanic borrowers, with 18.8% experiencing denials compared to 10% for non-Hispanic whites, often due to elevated debt-to-income ratios, which account for 38% of denials.

Zillow's analysis indicates that the home value gap for Black homeowners has slightly narrowed over the past year as well, to 17.7% from 17.9%. However, the gap remains wider compared to mid-2022 (17.2%) and mid-2007, shortly before the housing bust (16.3%).

Typical Home Values by Race and Ethnicity (National)
Race	Typical Home Value (based on Zillow Home Value Index)	Year-Over-Year Change in Typical Home Value (%)	Home Value Gap, Relative to White Home Values (%)	One-Year Change in Home Value Gap (Percentage Points)	Five-Year Change in Home Value Gap (Percentage Points)
All	$362,143	2.51 %	-2.9 %	0.05pp	0.27pp
Asian	$379,919	2.65 %	1.9 %	0.19pp	-0.09pp
Black	$306,928	2.69 %	-17.7 %	0.19pp	1.67pp
Hispanic	$328,283	2.62 %	-11.9 %	0.14pp	0.83pp
Pacific Islander	$350,176	2.58 %	-6.1 %	.011pp	0.91pp
White (non-Hispanic)	$372,835	2.46 %	--	--	--

 

Hispanic Home Value Gaps Relative to White Home Values by Metro
Region	Size Rank	Typical Home Value (Based on Zillow Home Value Index)	Year-Over-Year Change in Typical Home Value (%)	Home Value Gap, Relative to White Home Values (%)	One-Year Change in Home Value Gap (Percentage Points)	Five-Year Change in Home Value Gap (Percentage Points)
United States	0	$328,283	2.6 %	-11.9 %	0.14	0.83
New York, NY	1	$616,961	7.0 %	-11.8 %	0.00	3.12
Los Angeles, CA	2	$757,081	6.2 %	-32.0 %	0.75	1.26
Chicago, IL	3	$277,784	5.8 %	-21.1 %	0.73	2.97
Dallas, TX	4	$308,407	-0.5 %	-23.8 %	-0.21	0.48
Houston, TX	5	$262,205	0.2 %	-23.4 %	-0.37	0.93
Washington, DC	6	$530,240	3.2 %	-9.8 %	-0.05	-0.26
Philadelphia, PA	7	$306,432	5.6 %	-21.0 %	0.73	2.90
Miami, FL	8	$481,455	4.5 %	-8.2 %	1.11	0.73
Atlanta, GA	9	$367,869	2.1 %	-9.8 %	-0.17	1.40
Boston, MA	10	$612,730	6.2 %	-13.7 %	0.55	1.79
Phoenix, AZ	11	$382,548	1.3 %	-20.3 %	0.16	1.47
San Francisco, CA	12	$933,036	2.4 %	-23.1 %	0.25	-0.57
Riverside, CA	13	$555,505	5.0 %	-6.1 %	1.07	0.78
Detroit, MI	14	$214,780	4.1 %	-21.1 %	0.16	1.59
Seattle, WA	15	$672,295	3.8 %	-9.4 %	-0.25	0.21
Minneapolis, MN	16	$345,525	-0.1 %	-9.0 %	-0.13	-0.75
San Diego, CA	17	$789,845	6.0 %	-20.8 %	-0.01	-1.37
Tampa, FL	18	$361,364	0.7 %	-6.0 %	0.47	1.24
Denver, CO	19	$534,266	0.3 %	-10.2 %	-0.06	0.39
Baltimore, MD	20	$361,431	2.2 %	-10.0 %	-0.04	0.60
St. Louis, MO	21	$237,436	3.2 %	-10.0 %	0.26	0.07
Orlando, FL	22	$382,635	1.6 %	-6.5 %	0.28	0.84
Charlotte, NC	23	$354,059	2.3 %	-10.6 %	-0.38	1.16
San Antonio, TX	24	$253,056	-3.3 %	-20.0 %	-0.58	-2.22
Portland, OR	25	$522,869	0.4 %	-4.8 %	0.05	0.36
Sacramento, CA	26	$545,042	1.9 %	-6.7 %	0.07	1.07
Pittsburgh, PA	27	$212,743	2.9 %	-1.8 %	0.30	0.52
Cincinnati, OH	28	$288,459	3.9 %	-0.4 %	0.18	0.76
Austin, TX	29	$386,620	-4.7 %	-20.0 %	-0.12	-0.20
Las Vegas, NV	30	$394,817	6.3 %	-11.8 %	0.15	1.22
Kansas City, MO	31	$259,774	3.1 %	-16.9 %	0.56	4.92
Columbus, OH	32	$301,314	3.8 %	-6.1 %	0.29	1.79
Indianapolis, IN	34	$257,310	2.8 %	-9.3 %	0.33	2.87
Cleveland, OH	35	$197,351	6.3 %	-19.7 %	0.60	1.82
San Jose, CA	36	$1,205,284	8.3 %	-29.5 %	-0.19	--
Nashville, TN	37	$410,933	1.2 %	-8.4 %	-0.08	-0.34
Virginia Beach, VA	38	$340,167	4.1 %	-5.6 %	-0.02	0.41
Providence, RI	39	$443,424	7.7 %	-10.6 %	0.61	3.17
Jacksonville, FL	40	$351,709	0.0 %	-5.3 %	-0.16	-0.20
Milwaukee, WI	41	$302,557	6.4 %	-16.5 %	1.33	3.78
Oklahoma City, OK	42	$188,978	2.9 %	-22.4 %	0.92	2.31
Raleigh, NC	43	$399,795	0.8 %	-12.1 %	-0.55	0.20
Memphis, TN	44	$206,021	0.1 %	-24.5 %	0.18	2.20
Richmond, VA	45	$354,300	3.6 %	-8.1 %	-0.95	1.93
Louisville, KY	46	$239,268	3.6 %	-10.2 %	0.62	1.26
New Orleans, LA	47	$227,884	-4.9 %	-10.5 %	-0.09	-0.38
Salt Lake City, UT	48	$474,847	1.4 %	-14.3 %	0.38	1.57
Hartford, CT	49	$320,684	8.2 %	-15.1 %	0.22	2.69
Buffalo, NY	50	$234,885	5.9 %	-15.5 %	0.28	0.43
Birmingham, AL	51	$214,607	-1.1 %	-23.6 %	-0.21	0.86
Rochester, NY	52	$212,113	8.5 %	-20.5 %	1.19	0.88
Grand Rapids, MI	53	$296,116	4.3 %	-10.1 %	0.07	1.77
Tucson, AZ	54	$306,415	2.4 %	-17.3 %	0.29	1.48
Urban Honolulu, HI	55	$837,579	0.2 %	-9.4 %	0.11	1.60
Tulsa, OK	56	$203,248	5.1 %	-16.6 %	0.91	4.17
Fresno, CA	57	$361,363	3.7 %	-14.8 %	0.44	1.77
Worcester, MA	58	$417,878	6.7 %	-9.3 %	0.20	1.97
Omaha, NE	59	$235,734	2.5 %	-20.6 %	0.34	2.91
Bridgeport, CT	60	$476,062	7.1 %	-28.9 %	0.29	1.01
Greenville, SC	61	$282,466	2.6 %	-5.1 %	0.08	0.50
Albuquerque, NM	62	$317,233	3.8 %	-10.4 %	0.37	2.49
Bakersfield, CA	63	$341,373	5.4 %	-6.7 %	0.88	3.11
Albany, NY	64	$326,272	6.0 %	-3.7 %	0.09	0.31
Knoxville, TN	65	$334,875	4.8 %	-3.6 %	0.13	0.40
Baton Rouge, LA	66	$237,438	1.1 %	-4.5 %	-0.03	-0.56
McAllen, TX	67	$185,676	4.1 %	-2.5 %	0.49	1.74
New Haven, CT	68	$312,071	8.8 %	-20.4 %	1.07	4.72
El Paso, TX	69	$214,898	3.4 %	-11.0 %	-0.06	-0.12
Allentown, PA	70	$298,125	6.1 %	-12.6 %	0.51	3.49
Oxnard, CA	71	$781,421	5.2 %	-13.9 %	0.64	0.78
Columbia, SC	72	$241,786	3.2 %	-6.6 %	0.03	0.12
North Port, FL	73	$386,768	-3.8 %	-14.1 %	0.23	0.76
Dayton, OH	74	--
Charleston, SC	75	$429,839	4.0 %	-6.0 %	-0.14	-0.09
Greensboro, NC	76	$238,007	3.9 %	-11.1 %	0.48	0.82
Stockton, CA	77	$493,040	2.3 %	-9.7 %	0.18	1.43
Cape Coral, FL	78	$343,382	-3.3 %	-13.2 %	1.59	4.27
Boise City, ID	79	$464,466	2.8 %	-2.8 %	0.07	0.25
Colorado Springs, CO	80	$409,478	0.0 %	-12.5 %	-0.32	0.32
Little Rock, AR	81	$185,896	4.1 %	-20.1 %	0.61	-0.95
Lakeland, FL	82	$315,409	-0.8 %	0.2 %	-0.45	-0.86
Akron, OH	83	$197,938	6.9 %	-12.2 %	1.23	2.93
Des Moines, IA	84	$234,000	3.8 %	-18.2 %	0.92	2.30
Springfield, MA	85	$321,597	6.5 %	-11.5 %	0.75	4.91
Poughkeepsie, NY	86	--
Ogden, UT	87	$469,761	1.3 %	-5.6 %	0.03	0.28
Madison, WI	88	$404,765	5.4 %	-2.2 %	0.15	1.05
Winston, NC	89	$251,975	4.7 %	-8.4 %	0.43	1.60
Deltona, FL	90	$328,665	0.7 %	-6.2 %	1.42	2.43
Syracuse, NY	91	$216,714	10.6 %	-11.2 %	0.47	0.70
Provo, UT	92	$492,017	0.2 %	-7.0 %	-0.11	0.21
Toledo, OH	93	$172,244	5.1 %	-11.7 %	0.69	2.66
Wichita, KS	94	$181,120	7.0 %	-18.7 %	1.02	4.03
Durham, NC	95	$392,000	1.9 %	-6.1 %	-0.15	0.19
Augusta, GA	96	$229,761	2.1 %	-2.6 %	-0.41	-4.60
Palm Bay, FL	97	$344,506	-1.0 %	-4.3 %	-0.03	0.35
Jackson, MS	98	$208,466	-0.6 %	0.2 %	0.02	0.65
Harrisburg, PA	99	$252,998	4.3 %	-12.1 %	0.87	3.18
Spokane, WA	100	$390,956	0.4 %	-5.7 %	0.02	0.43

Methodology: Zillow's analysis aggregated small-area home values (ZHVI), weighted by estimated counts of homeowners by race and ethnicity of the household head in the American Community Survey, to estimate relative home values and home value appreciation by race.

About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2024 MFTB Holdco, Inc., a Zillow affiliate.

 

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SOURCE Zillow

FAQ

What is the current home value gap between Hispanic and white homeowners according to Zillow's research?

According to Zillow's research, Hispanic-owned homes are currently worth 11.9% less than homes owned by non-Hispanic white households, which is the narrowest gap ever observed.

How has the home value gap for Hispanic homeowners changed over the past year for Zillow (ZG) stock?

The home value gap for Hispanic homeowners has narrowed from 12.1% last year to 11.9% this year, according to Zillow's (ZG) research.

What percentage of prospective buyers and successful purchasers are Hispanic, according to Zillow's 2024 Consumer Housing Trends Report?

According to Zillow's 2024 Consumer Housing Trends Report, Hispanics represent 18% of prospective buyers but only 13% of successful purchasers.

How do mortgage denial rates compare between Hispanic borrowers and non-Hispanic white borrowers in Zillow's (ZG) study?

Zillow's (ZG) study shows that Hispanic borrowers face higher mortgage denial rates at 18.8%, compared to 10% for non-Hispanic white borrowers.