Study finds Grand Rapids has 37.7% minority homeownership rate

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Home equity is one of the largest contributors to household wealth, but Grand Rapids ranks fairly low in terms of minority homeownership.

A recent report from Construction Coverage found that among minority households in Grand Rapids, 37.7% own their homes. The report found 43.1% of the total Grand Rapids population identifies as part of the minority population.

In further detail, the Grand Rapids homeownership rates are:

  • Black homeownership rate: 35.4%
  • Hispanic homeownership rate: 41.9%
  • Asian, Native Hawaiian, and Pacific Islander homeownership rate: 35.7%
  • White homeownership rate: 63.7%

Among 121 midsized cities on the list, Grand Rapids came in at No. 84. Elk Grove, California, had the highest rate of minority homeownership at 72.3% with minorities being 65.9% of the population. Newark, New Jersey, ranked at the bottom; while 87.9% of its population identify as a minority, 21.3% of minority households are homeowners.

At the national level, the white homeownership rate is about 72%, compared to 47% for minorities. The study said this gap that has spanned generations has contributed to the extreme disparity between the average net worth of white families ($188,200) and minority families ($36,100 and $24,100) for Hispanic and Black families, respectively. Still, some locations see significantly larger minority homeownership rates than others.

Methodology

Researchers at Construction Coverage analyzed the latest housing data from the U.S. Census Bureau’s 2019 American Community Survey five-year estimates.

Cities were ranked according to their minority homeownership rates. In the event of a tie, the city with the larger number of minority homeowners was ranked higher. Researchers also calculated the homeownership rates for Black; Hispanic (of any race); Asian, Native Hawaiian and Pacific Islander; and non-Hispanic white households, as well as the minority population share. Minorities were defined as people other than non-Hispanic whites.

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