U.S. flag

An official website of the United States government

Skip Header


Who Could Afford to Buy a Home in 2004?

Written by:
Report Number H121/09-1

Highlights

 • In 2004, about 58 percent (+/– 0.6) of • American families (current owners as well as renters) could afford to purchase a modestly priced home in the state where they lived. That is, they could afford to purchase a modestly priced home with cash or could qualify for a 30-year conventional mortgage with a 5 percent down payment. A modestly priced home is one that is among the 25 percent least expensive owner-occupied homes in the area where a family lives (Table 1).

 • The percentage of families able to buy a modestly priced home was higher in 2004 than in 2002, when about 56 percent (+/– 0.7) could afford to purchase a modestly priced home (Table 1).

 • About 8 percent (+/– 0.4) of families who were renting could afford to buy a modestly priced home in 2004—the same as the 8 percent (+/– 0.5) of renters who could afford such a purchase in 2002 (Table 1).

 • About 12 percent (+/– 1.6) of non-Hispanic White families who were renting in 2004 could afford a modestly priced home, compared with 4 percent (+/– 1.9) of Black families who were renting (Figure 2).

 • Renter families in 2004 were usually disqualified from purchasing a modestly priced home for more than one reason (lack of down payment, excessive debt, or insufficient income). About 72 percent (+/– 1.1) of renter families did not qualify because of multiple reasons (Table 4).
 
 • Down payment assistance would do more to improve the affordability of a modestly priced home for renters than lower down payment requirements (which would increase monthly mortgage payments) or a major reduction in interest rates. Financial assistance would, however, require funding from another source, ideally from a party that has no financial gain from the transaction, such as employers, nonprofit groups, or a governmental agency (Table 5).

Tables

Page Last Revised - October 8, 2021
Is this page helpful?
Thumbs Up Image Yes Thumbs Down Image No
NO THANKS
255 characters maximum 255 characters maximum reached
Thank you for your feedback.
Comments or suggestions?

Top

Back to Header