Why Homeownership is a National Priority

Owning a home doesn’t have to be a dream. Check out these initiatives and resources to get buyers in a position to make homeownership a reality.

June is a month for graduations, weddings, and summer dreams. It’s also the month when Realtors® and housing advocates promote various pathways to homeownership, a goal for those who want to build generational wealth and create a place to call their own.

But the truth is that buying a home in 2024 is challenging, and it is harder for some groups to take that first step to homeownership. According to Realtor.com research, low-income earners are 22% more likely to be denied a loan, LGBTQ+ are 25% less likely to own a home compared to all Americans, one in four Hispanic individuals complete the home-buying process entirely in Spanish, seven in 10 veterans are unaware they qualify for a zero-down home loan, and the gap between Black versus white homeownership is worse today than in 1968 when the Fair Housing Act was passed.

The Census Bureau’s quarterly report for Q1 2024 showed the latest homeownership rate is at 65.6%, down 0.1 percentage points from Q4 2023 and the lowest rate in two years. On May 31 the Biden administration issued a Proclamation on National Homeownership Month 2024, calling upon “the people of this Nation to safeguard the American Dream by ensuring that everyone has access to an affordable home in a community of their choice.”

Put simply, the proclamation states, “Whether they rent or buy, Americans deserve a safe place to call home.”

Some of the proposed initiatives to make homeownership more accessible include:

A tax credit of $5,000 per year for the next 2 years for any family earning under $200,000 — money they can put toward a mortgage when they buy their first home or trade up for more space.
My plan would also provide first-generation homebuyers with $25,000 for a down payment.
A pilot program run by the Federal Housing Administration (FHA) to make it more affordable to refinance a home by eliminating title insurance fees on certain federally backed mortgages, which would save buyers $1,500 at closing.
The FHA is now considering positive rental history when making decisions about creditworthiness — ensuring that the people who could qualify for mortgage financing receive it.
Advancement in fair housing practices, including by rooting out bias in the home appraisal process, which keeps too many Black and Brown families from enjoying the full financial returns of homeownership.

Homeownership In Our Region

Let’s start with a look at what local buyers are up against. Overall, Realtor.com statistics shows the Washington, DC/Northern Virginia/Maryland/West Virginia region with a median listing price of $640,000 (unchanged from May 2023). The District, which is not a state, ranks the lowest in both our region and the nation at 43.9% for homeownership. There are many factors that contribute to this lower rate of homeownership, including a higher transition rate of people moving in-and-out of the region (9.8% for DC compared to 2.5% nationally). This is partly explained by the number of universities, embassies, research facilities and government contract work that brings short-term residents to the area, but high housing costs are another factor. According to Realtor.com the median listing home price in Washington, DC was $614,900 in May 2024 (trending down -5.4% year-over-year) while the median home sold price was $697,500.

On the other end of the scale is West Virginia, which ranked highest in the nation at 74.7%, thanks in part to home values that are less than half that for the entire country. Again from Realtor.com, the median listing home price in Charleston, WV was $182.500 in May 2024 (trending down -13.1% year-over-year) while median home sold price was $181.900. Comparing the two areas, it’s clear that a buyer’s dollar is going to go much further in West Virginia than DC.

Rounding out the homeownership review is Virginia at 69.9% and Maryland at 70.9%. The average sales price in Northern Virginia in May 2024 was $882,180, up 10.2% the previous year’s average of $800.427, while the median sales price was $760,000 in May 2024, up from $715,000 in May 2023. Meanwhile, the average Maryland home value was $421,804, up 4.0% over the past year.

Where To Start?

Buyers in the DC-Metro area need a strong and strategic game plan to succeed in our competitive and expensive local market. The first step a buyer should take is to hire a Realtor® to assist in their search for a home. Agents have the resources, connections, insight to help buyers navigate the buying process and save their clients from the pitfalls of going into a major financial negotiation unprepared and unrepresented. An agent will connect buyers with savvy lenders who know the best financing and grant programs available and can guide buyers through complicated scenarios with many moving pieces.

First-time home buyers have it the hardest in this current market, with interest rates higher than they’ve been in decades (although still relatively moderate in the 6-7% rate range), high home prices, and limited equity. But a little bit of research and preparation goes a long way! Both Realtor.com and the U.S. Department of Housing and Urban Development (HUD) have extensive resources to tap, in addition to the advice their agent will offer.

Putting It All Together

Deciding to buy a home is a personal, economic, and logistical process. It’s not always the right choice for everyone, but for those who have a goal to become a homeowner, put down roots in a community, and begin building financial security through home equity, there is a way forward. Start with a conversation with an experienced McEnearney | Middleburg Real Estate | Atoka Properties agent and see which path is right for you,