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HUD Archives: News Releases
NEW HUD REPORT: INCREASING MINORITY HOMEOWNERSHIP
WILL SPUR ECONOMY
In June, President Bush announced his goal to help increase minority homeownership by 5.5 million by the end of the decade in an effort to close the so-called "homeownership gap." This gap shows minority families continue to significantly lag behind the nation's homeownership rate. Despite increases in minority homeownership during the 1990s, less than half of African-American and Hispanic families own their own home while 74.3 percent of non-Hispanic whites are homeowners.
"President Bush's goal of opening the doors of the American Dream to more families will transform lives on so many levels," said Martinez. "When people own their own homes, they not only build their own futures, they transform entire communities in ways that have enormous social and economic benefits to all Americans."
Based on latest Census and other economic statistics, HUD's report indicates
that homeownership not only serves as a source of stability for families and
communities but also provides the foundation for many Americans' financial security.
In addition to adding to personal wealth, owning a home also creates jobs in
the construction trades and benefits businesses that sell home improvement and
other housing-related goods and services.
Perhaps the largest societal benefit of increasing homeownership is seen in the millions of jobs it creates for American workers. For example, building 1,000 single-family homes creates 2,448 full-time jobs. Approximately 40 percent of these jobs are onsite construction work; another 27 percent involve employment in transportation, trade, and other locally based services. Additional jobs are created to meet the increase in demand for household goods and services. This increase in jobs represents over $150 billion in new wages.
In addition, expenses for professional services provided when buying and financing
a home, including those of real estate agents, mortgage originators and others
are estimated to be $70 billion.
According to the Census Bureau, 21 percent of the nation's wealth is held in the form of home equity. Over time, purchasing a home has proven to be an effective wealth building strategy for millions of Americans. In addition, few sources of revenue contribute more to the health and economic security of state and local governments than the residential property tax. Coupled with transfer taxes on deeds and mortgages, these revenues contribute a tremendous amount to the fiscal health of state and local governments.
Read the new HUD report, Economic Benefits of Increasing Minority Homeownership or Blueprint for the American Dream.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws.
Content Archived: April 9, 2010