Washington, D.C. – June 17, 2020 (nar.realtor) The National Association of Realtors® this week joined the U.S. Chamber of Commerce’s Equality of Opportunity initiative, part of a broad national effort to examine economic inequality in America. The program has earned the support of more than 400 organizations from across the country, with business and policy leaders assembling to advance economic inclusion and highlight a number of potential data-driven solutions to address inequality of opportunity.

“NAR has spent recent years reexamining how our 1.4 million members can best lead the fight against discrimination, bigotry and injustice,” said NAR CEO Bob Goldberg, who earlier this year was welcomed into the U.S. Chamber of Commerce Committee of 100. “We believe that building a better future in America begins with equal access to housing and opportunity. With ongoing residential segregation contributing to many problems in our society, NAR recognizes that this nation cannot achieve true economic equality without first achieving true equality in housing. Our commitment to this cause and to Fair Housing has only strengthened in response to recent tragedies in America.”

Earlier this month, NAR began circulating a 50-minute implicit bias training video to its members and association staff. The video draws upon recent research to illustrate how the human brain’s automatic, instant association of stereotypes with particular groups can cause people to treat those who are different from them unfairly. Scientific evidence also suggests these biases persist despite people’s best intentions and often without conscious awareness.

NAR is also urging Realtor® associations to consider revising their new member orientations and other mandatory education courses to focus on the delivery of equal services. This comes after NAR in January unveiled a new Fair Housing Accountability, Culture Change and Training (ACT) Plan, designed to position its members as industry leaders in protecting housing rights.

“Working together with our federation of state and local chambers and association partners, we can better understand the challenges facing specific communities and help drive lasting solutions across the nation,” said Suzanne P. Clark, president of the U.S. Chamber of Commerce. “We will use our influence, expertise, and convening power to serve our country at a time when the leadership of the business community is needed more than ever. And we commit to ensuring that the impact of our work reaches more people.”

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

Washington, D.C. – June 17, 2020 (nar.realtor) – The interest in homebuying is strong as reflected in the surge in mortgage applications to buy a home. However, there is not enough supply to meet demand. 

Though housing starts in May recovered slightly from the prior month, this marks two consecutive months of depressed levels – down by more than 20% from one year ago – due to the disruption from the economic lockdown. Significant growth in new home construction, however, is required in the upcoming months and possibly even stretching into the next three years. 

Before the pandemic, America faced a housing shortage of around 5 to 6 million homes due to multiple years of underproduction of new homes. Now, in the middle of 2020, the housing shortage has intensified. Consequently, home prices will be pushed higher thereby making ownership opportunities for first-time buyers more difficult. More homes need to be built.

With much of the nation’s attention currently focused on combating racial inequality, particularly as it relates to African-Americans, the following five-point plan would increase the number of African-American homeowners and help close the persistent gap in homeownership rates between whites and African-Americans:

• Build more homes to increase supply: The lack of housing supply makes converting from renting to owning very difficult. The lack of viable purchase options and resulting competition rapidly push up home prices, precluding some potential first-time buyers from entering the market. 
• Build more homes in Opportunity Zones: NAR strongly supports Opportunity Zones as a means by which to invest in the revitalization of economically-distressed areas.
• Increase access to down payment assistance: Saving for a down payment can be the biggest hurdle for renters wanting to become homeowners. In recent years, a growing number of first-time buyers received help from family members with their down payments. However, due to historical gaps in accessing and accumulating wealth, it’s much more difficult for African-Americans to obtain substantial financial assistance from family members. Therefore, increased access to federal down payment assistance based on a certain income threshold is vital, particularly for African-Americans.
• Strengthen FHA’s loan program: FHA loans have been an important source of financing for first-time buyers and minority households. Shifting federal dollars to strengthen the FHA program could lower mortgage insurance premiums and monthly mortgage payments.
• Expand alternative credit scoring models: Expanding credit scoring models to include rent and utilities payments – and thereby adding more positive payment histories to better demonstrate financial responsibility – can help increase homeownership opportunities for minority and first-time buyers.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.