Currently Reading

Coronavirus Homebuying Rebound Highlights Wealth Divide


Coronavirus Homebuying Rebound Highlights Wealth Divide

June 23, 2020
Family of four looking at a house
By Ursula Page

Those impacted most by pandemic job loss, such as low-income families and minority workers, are seeing an even greater divide in the ability to own a home. Before the pandemic, low-income workers were already excluded from purchasing a home, according to Redfin, and now that goal may seem near impossible. White-collar workers with secure jobs are the ones taking advantage of dropping mortgage rates and home prices, coming out of sheltering in place with a greater thirst for homebuying. And most of them are white. 

The impact of the coronavirus shutdowns on homebuyer demand has so far been short and muted, even in some of the cities that have been the hardest-hit by unemployment during the recession. This rapid recovery in demand is a strong indication that most people who were, and are, in the market to buy a home have escaped this recession relatively unscathed.

Although the current recession officially began in February, the biggest effects began in mid-March, when most of the nation shut down due to the coronavirus. Since then, people such as tech workers and those with other white-collar office jobs that can be done remotely, who have job security and access to cash and credit have been able to continue their home searches and take advantage of low mortgage interest rates. This group is largely white. On the flip side, people who have been struggling the most during this recession—those with low-income jobs in industries like service and hospitality, groups that are made up of much more Blacks and other minorities—had largely already been priced out of the housing market even before the economy stalled. Because of this inequality across incomes and industries, the pain of the coronavirus recession is likely to be over relatively quickly for the economically privileged, even in areas where unemployment has soared.

Read More 

Related Stories

Housing Markets

States Where Wealthy Gen Xers Move To

Gen Xers, those born between 1965 and 1980, made up the highest share of homebuyers in 2020—they also earn the most out of other homebuying…

Market Data + Trends

First-Time Buyers Make Up Majority of Today's Buyers

Americans’ desire for homeownership continued its rebound from a low point in 2020 through the second quarter of 2021. The National Association of…


5 Ways to Appeal to Military Homebuyers

Home builders can show their support for military families by following these simple but important steps


More in Category

Never before have home builders had to navigate a market where houses are pre-selling fast while the cost of so many resources is rising and so many supplies are constrained at the same time


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.