More nonwhite homebuyers and fewer White buyers have been taking out mortgages over the past five years, according to a data analysis by Redfin (NASDAQ:RDFN).
Slightly less than two-thirds (62.2%) of new mortgages issued in 2023 went to White homebuyers, down from 64% in 2022 and 70.4% in 2018. The U.S. population, as of 2022 (the most recent year where data was tracked) is 59.5% White.
At the same time, the percentage of Hispanic buyers taking out mortgages increased to 14% in 2023 from 12.6% in 2022 and 11% in 2018; 18.8% of the population is Hispanic. Black buyers represented 8.7% of new mortgage holders last year, little changed from 8.6% in 2022 but up from 7.1% in 2018; 12.2% of the population is Black. Asian buyers took out 8.2% of new mortgages in 2023, unchanged from 2022 but higher than the 6.4% rate in 2018; 5.9% of the population is Asian.
Redfin’s analysis of 2018-2023 Home Mortgage Disclosure Act (HMDA) data covering mortgage originations for primary homes – the data did not include mortgage originations for investment properties or second homes.
“The pool of homebuyers taking out mortgages is becoming less white because America is becoming more diverse, and many people of color are in their prime homebuying years,” said Redfin Senior Economist Elijah de la Campa. “The racial wage gap, while still sizable, has also been shrinking. That has made homeownership more feasible for some Black and Hispanic people, though they’re still significantly less likely to own homes than White people.”
