NAR’s Chief Economist Lawrence Yun Comments on How to Increase African-American Homeownership

On Wednesday, June 17, NAR’s Chief Economist Lawrence Yun commented on how to close the gap in homeownership rates between whites and African- Americans. To combat race inequality in the real estate industry, Yun released a five-step plan that would increase African-American homeownership and close the gap. This plan includes:

1. Increase home inventory by building more homes. The lack of options to move from renting to buying is causing an aversion for those who actually want to buy.
2. Build more homes in Opportunity Zones to help the growth of these economically-distressed areas.
3. Increase access to down payment assistance from the federal government. As saving for a down payment is one of the biggest deterrents for renters to become buyers, providing down payment assistance to a certain income threshold would help increase homeownership.
4. Strengthening FHA loan programs could lower mortgage insurance premiums and monthly mortgage payments.
5. Creating more positive credit payment histories, such as rent and utilities to demonstrate financial responsibility, can help increase homeownership opportunities for African-Americans and first-time buyers.

To read the full press release,click here.