As part of American Housing Month, the ABA Foundation today released a new infographic highlighting gaps in homeownership rates, barriers faced by younger generations and communities of color trying to own a home—as well as resources banks offer to overcome those barriers.
The infographic shows that student loan debt and rising home prices are two of the biggest factors in preventing millennials from saving for a down payment, with the average student loan debt among millennials averaging $40,000 and home prices rising by 12% annually.
Perception of the amount of money required for a down payment is another obstacle to homeownership, according to the infographic. The median down payment for first-time homebuyers is 7%, according to data from National Association of Realtors, but more than half of Black and Hispanic homebuyers believe a 20% down payment is required and about 70% of homebuyers are unaware of down payment assistance programs for middle-income buyers.
