Black Millennials contributed to unexpected home-buying surge
First-time Black Millennial homeowners were the bulk of Black American home purchasers this year
Black adults between the ages of 26 and 39 contributed to a nationwide rise in homeownership overall for African Americans that peaked in the spring during the start of the pandemic.
The National Association of Realtors analysis noted that 5 percent of Black people purchased homes during the first three months of 2020, increasing by one percent compared to 2019. Due to this growth, ownership for Black Americans increased by more than two points according to the United States Census Bureau.
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According to CNN, first-time Black Millennial homeowners were the bulk of Black American home purchasers this year as many have abandoned apartment living as mortgage rates hit a record low. Many Americans who were in good standing prior to the pandemic and have managed to keep their jobs are benefiting.
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Lawrence Yun, Chief Economist and Senior Vice President of Research for the National Association of Realtors referenced Black Millennials’ buying power.
“The fact that Black home purchases are much higher now compared to before the pandemic is quite a surprise,” Yun said.
Realtors and economists expects the trend of Black Millennials purchasing homes to continue in 2021 but say it doesn’t reflect all Black Americans – whose economic state worsened due to the pandemic and loss of jobs.
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“We’ve already seen indicators of more houses starting to come on the market, more people being aggressive,” realtor JoAnna Poole said. She said her firm’s business is up by 12 percent.
In November, CNN Business reported that the coronavirus pandemic caused the housing market to continue its increase. Home sales increased by nearly 21 percent in June after months of plummeting sales according to the National Association of Realtors.
Jay Farmer, CEO of Rocket Mortgage and 25-year veteran in the mortgage industry was surprised by the unexpected boom in home purchases at the time.
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Mandated orders requiring Americans to work from home is said to have shifted their perspective on the value of investing in a home.
“The home is not only the place we raise our families, but often where you’re educating your children and also working,” Farmer said. “The desire for home ownership is probably at one of the highest levels I’ve ever experienced.
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