Black homeownership in the U.S. increased 0.6% year over year in 2023, according to a report from the National Association of Realtors (NAR). That marks the largest annual increase among racial groups, though Black homeownership is still behind the rates of white, Asian and Hispanic homeowners in the U.S.

The NAR report states that 44.7% of Black people in the U.S. owned a home in 2023, the most recent year analyzed by the association. That compares to 72.4% of white people, 63.4% of Asians and 51% of Hispanics.

From 2013 to 2023, Black homeownership in the U.S. increased 2.8%, according to the NAR. During that same period, the number of Hispanic homeowners rose 5.8%, while Asian and white homeownership increased by 5.6% and 3.6%, respectively.

Housing affordability and rental costs underscore the challenges Black renters face when looking to transition into homeownership. NAR data reveals that 55% of Black renters between the ages of 25 and 40 spend more than 30% of their income on rent. Meanwhile, Black homeowners pay more on average for homeowners insurance than other racial groups.

“Today’s first-time homebuyers continue to face housing affordability and credit-access challenges, but the situation nationwide varies when assessing purchasing power,” said Jessica Lautz, the NAR’s deputy chief economist and vice president of research, in a statement. “Non-white homebuyers are more likely to be first-time buyers, underscoring the importance of changing demographics and the age of local populations, which will increase non-white homeownership over time.”