Real Estate

Increase in minority income pushes homeownership rate higher

Rising income reduces effect of rising home prices

The median income increased in the U.S. from 2015 to 2016 to the highest point ever, according to the latest Income, Poverty and Health Insurance Coverage in the United States: 2016 report from the U.S. Census Bureau.

Real median household income increased 3.2% to $59,039 from 2015 to 2016, according to the newly released report. This represents a second annual increase and is also the highest level ever recorded.

Asian households still hold the highest median income with $81,431, which is not statistically different from the year before. Non-Hispanic white households came in next with a median income of $47,675, up 2% from 2015 to 2016.

The two household segments with the lowest median income also saw the most growth from 2015 to 2016. Black household income increased 5.7% to $39,490, while Hispanic household income increased 4.3% to $47,675.

This income growth among minorities helps explained the surge in Hispanic homeownership throughout 2016, despite constantly rising home prices.

The homeownership rate among Hispanics increased to 46% in 2016, up from 45.6% the year before, according to a report from the National Association of Hispanic Real Estate Professionals. This increase occurred even as homeownership among all other demographics decreased.

And experts are hopeful that this increase in homeownership among Hispanics and other minorities will continue to rise in the months ahead.

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