While affordability worsened for all Houston homebuyers in 2023, the affordability gap widened even more drastically for Black and Hispanic/Latino homebuyers, according to the inaugural Housing Affordability by Ethnicity report from the Houston Association of REALTORS® (HAR).

Based on the association’s Housing Affordability Index (HAI), 40% of Houston households made enough money — an annual income of $105,200 — to be able to afford a median-priced home last year, which was $336,000. In 2022, 44% made enough money to be able to afford a median-priced home.

However, that proportion is lower among Black and Hispanic or Latino households. Only 25% of Hispanic/Latino households in Houston earned enough income to buy a median-priced home in 2023, down from 28% in 2022, while 26% of Black households could afford the same, down from 34% in 2022.

Meanwhile, 51% of White and Asian households could afford a median-priced home, down from 58% in 2022.

“High interest rates have put the American dream of homeownership further out of reach for all ethnic groups, especially Black and Hispanic/Latino consumers — groups that have historically struggled to buy a home,” HAR Chair Thomas Mouton said in the report. “This underscores the need for equitable solutions to ensure that every family has access to affordable housing, regardless of race or ethnicity.”