Over the next two decades, new homeowners nationwide will look vastly different than they have in the past for one primary reason: increasing racial and ethnic diversity. Until recently, structural barriers have concentrated homeownership among white families, causing homeownership rates among Black, Hispanic, and Asian families and families of other races to lag behind.

In a recent report, we found that even though those homeownership rates will continue to lag, demographic changes alone suggest that over the next two decades, the net growth in homeowners will be solely among families of color. But changes in household and homeowner composition will look very different across states.

Our projections for Texas, Georgia, California, and Minnesota—states with very different racial and ethnic compositions—show the wide range of homeownership trajectories we expect to see over the next two decades. Texas has highest share of Hispanic families in the nation; Georgia has the highest share of Black families; California has the highest share of families of Asian descent as well as families that are not white, Black, or Hispanic (we have grouped these families together and will refer to them as “Asian and others” throughout this post) and the second-highest share of Hispanic households; and Minnesota has mostly white households.

Though households in all states are becoming more racially and ethnically diverse, they are starting at different points and moving at different speeds. Similarly, individual states have very different homeownership patterns. These are contained in our state fact sheets, which provide detailed information for future household formation and homeownership. The housing industry and state and federal policymakers need to be aware of these trajectories so they can prepare for and support homeowners of all races and ethnicities.

Read the full article about racial and ethnic diversity in home ownership by Laurie Goodman and Jun Zhu at Urban Institute.