Ethnic minorities spent a higher share of their household income on housing than White British households, but received less in return, according to research from the Resolution Foundation.
Bangladeshi and Arab adults spent over twice as much – 23% and 26% of their incomes – on housing, compared to the 11% spent by White British adults.
The research found that even when comparing households with higher incomes, Chinese and Indian adults still allocated more of their earnings to housing, at 16% and 15%, respectively.
Factors such as age, tenure, and region explained at least half of the housing affordability gap; however, low homeownership was identified as the main issue.
A significant portion of the affordability gap for ethnic minorities remained unexplained.
Additionally, ethnic minorities were found to live in poorer housing conditions.
Black African and Bangladeshi-headed households were three times more likely to live in damp homes compared to White British households.
The research showed that more than one in six Pakistani, Black African, and Black other adults lived in overcrowded homes, making them more than nine-times likely to face overcrowding compared to their White British counterparts.
The report suggested that some ethnic minority groups paid a premium for housing due to a strong attachment to community.
It also highlighted discrimination as a factor, with 9% of Arab individuals and 7% of Black Caribbean individuals reporting ethnic discrimination in accessing housing in the last five years.
Camron Aref-Adib, economist at the Resolution Foundation, said: “Ethnic minorities are spending a higher share of their income on keeping a roof over their heads.
“This affordability gap can’t be fully explained by where people live and whether they own or rent.
“And despite spending more, people are getting less in return – with Black African and Bangladeshi- households three times more likely to live in damp homes than their White British counterparts.
Aref-Adib added: “Ethnic minority families are at the sharp end of Britain’s housing crisis and would benefit most from actions to tackle it, such as building more homes and strengthening rights for private renters.
“But the possibility of structural discrimination in our housing market is a serious concern, and one that warrants an official inquiry.”
