Press release
Paying the Price: Realtor.com® finds LGBTQ+ and BIPOC Buyers Spend More of Their Income to Own a Home
Realtor.com® now displays down payment assistance information on all home listings, so shoppers can easily see if financial help is available SANTA CLARA,
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[{"type":"text","content":"Realtor.com® now displays down payment assistance information on all home listings, so shoppers can easily see if financial help is available\nSANTA CLARA, Calif., April 5, 2023 /PRNewswire/ -- Housing affordability remains near all-time lows and is a challenge for many homebuyers. According to new survey data from Realtor.com®, recent LGBTQ+ and BIPOC (Black, Indigenous, and people of color) buyers are going into homeownership weighed down and more burdened by housing costs than white and non-LGBTQ+ individuals.\nLower down payment, higher sales price and loan denials creates cost crunch for communities challenged by lower incomesApril is Fair Housing Month and it creates an opportunity to shine a light on the need to create more equitable housing opportunities and access for all individuals. Realtor.com®'s data shows that LGBTQ+ and BIPOC buyers are more likely to put smaller down payments on a home, with nearly two-thirds (65%) putting down 20% or less of a home's purchase price when buying compared to about half (53%) of white, non-LGBTQ+ buyers. LGBTQ+ and BIPOC buyers were also nearly 9% more likely to pay over a home's asking price to get their offer accepted – 86% paid over asking compared to 79% of white and non-LGBTQ+ individuals.\nA smaller down payment on top of an above-asking home price generally equates to a higher interest rate and monthly mortgage payment, and that means LGBTQ+ and BIPOC buyers are likely to pay a larger share of their income toward housing than other buyers. That's especially challenging for budgets, as a higher percentage of LGBTQ+ and BIPOC homebuyers were also more likely to fall into lower income groups than white and non-LGBTQ+ buyers. Realtor.com® also found that LGBTQ+ and BIPOC buyers face challenges during the mortgage process, and are 1.7 times more likely to have been denied mortgages two or more times.\n\"More Americans than ever before are stretched thin because of the growing housing cost burden, but our data shows that LGBTQ+ and BIPOC buyers are potentially spending even more of their income to own a home of their own, which can make it difficult to afford other essentials like food and transportation and creates even greater inequalities,\" said Laura Eddy, Realtor.com® vice president, Research and Insights. \"With the rising costs of homeownership taking a greater toll on budg...