Minority Homeownership Issues Continue in Chicago
While homeownership continues to be a key part of the American Dream, minorities in the United States lag behind the rest of the country in homeownership rates. According to a new report from ABODO Apartments, a national apartment listing service, 46 percent of minorities own a home, significantly behind the national average of 63.1 percent.
The report analyzed information from the U.S. Census Bureau on race, ethnicity, and homeownership to see where minorities are buying homes and how ownership rates have changed over time.
Nationwide, ABODO found that 71.3 percent of white residents, 58.5 percent of Asians, 45.6 percent of Hispanics and 41 percent of the black population are homeowners. While the report found that these minority groups were less likely to own a home now than they were in 2006 — with black homeownership having the largest decline from 46.3 percent since then — homeownership in general has declined from 67.3 percent in 2006 to 63.1 percent in 2016.
With minority homeownership rates plummeting, many prospective homeowners are searching for alternative financing methods, such as using a contract for deed method – which is very popular in the Midwest, specifically in Minnesota and Illinois.
On the other hand, the metropolitan statistical areas (MSA) where the highest percentage of minorities own homes are mainly in the South, Southwest and West. Minority homeownership rates in all of these states are higher than 45 percent. The highest percentage was in McAllen-Edinburg-Mission, Texas MSA, where 64.3 percent of minorities and 77.7 percent of white residents were homeowners.
The MSAs with the lowest percentage of minority homeowners tend to be located on the East Coast, with the Scranton-Wilkes-Barre-Hazelton MSA having the largest racial disparity: only 28.6 percent of minorities there are homeowners, compared to 70.8 percent of white residents.
The Chicago-Naperville-Elgin MSA ranks at No. 53 among all cities in terms of minority homeownership. However, when looking at the 45 largest cities in the country, Chicago comes in at No. 13 with 47.6 percent of minorities owning a home.
“When analyzed specifically by the largest minority groups in the country, the breakdown of homeowners is very interesting in Chicago,” said Sam Radbil, senior communications manager at ABODO. “Specifically, 74 percent of white population own homes, while just 39% of African-American people own, and 61.6 percent of Asian and 52 percent of Hispanic are homeowners. Clearly, all across the country, including Chicago, homeownership among minorities is far behind the homeownership rates of white people.”