Britain today is more diverse than ever before, and recent polling suggests that public attitudes towards diversity have grown increasingly positive. However, beneath this progress lies a persistent reality: ethnic inequalities remain deeply entrenched. One area where these disparities are particularly stark is housing affordability, an issue that has not been studied as extensively as it should be.

Recent research at the Resolution Foundation finds that ethnic minority adults in the UK spend a much larger share of their income on housing than White British adults. This is particularly striking for Bangladeshi, Black Other, and Arab households, who allocate 23%, 24%, and 26% of their income, respectively, compared to just 11% for White British households. This disparity isn’t simply a matter of income. Even groups with relatively higher earnings compared to White British adults, such as Indian and Chinese adults, face housing costs that take a significant toll on their living standards.

But why is this the case? One of the biggest contributors is housing tenure. Home ownership rates differ significantly across ethnic groups, with White British adults more than twice as likely to own a home than Black African or Arab adults. Given that renters pay more per square metre than homeowners, this imbalance significantly drives up housing costs for ethnic minorities.

Age also plays a role, as younger people typically spend a larger portion of their income on housing. With 40% of Black African and Pakistani adults aged between 19-34, compared to just 23% of White British adults, this youth-skewed demographic further exacerbates affordability challenges.

Furthermore, location matters too. Ethnic minorities are far more likely to reside in London and the South East, regions with some of the highest housing costs in the UK. At least half of the housing affordability gap between ethnic minorities and White British adults is due to differences in age, tenure and region (except for Pakistani adults, where these factors explain 42 per cent of the gap) with low home ownership being the biggest cause. However, a significant portion of the affordability gap facing ethnic minority adults remains unexplained.

So what else is going on?

Some might assume that ethnic minorities spend more on housing because they live in larger households. However, the reality is that they are far more likely than White British adults to live in overcrowded homes. For example, 22% of Pakistani adults live in overcrowded housing, compared to just 2% of White British adults. This suggests that despite the higher relative spending on housing, many ethnic minority households are not necessarily getting more space for their money.

Is it because they are choosing better-quality homes? The data disproves this theory. Ethnic minorities are actually more likely than White British adults to live in substandard housing. For example, Bangladeshi, Black Other, and Black African households are three times more likely to live in homes with damp than White British households—despite spending a higher share of their income on housing.

A home, however, is more than just a physical space—it’s about feeling secure and connected. For many minority groups, proximity to religious centres, cultural hubs, and familiar networks fosters a sense of belonging and strengthens their sense of place. This is particularly true for ethnic minorities such as Arab and South Asian adults, who report a stronger sense of belonging than would be expected given the average length of time in their neighbourhood — something for which they may be prepared to pay a premium.

However, for many, choice in the housing market may be constrained for other reasons too. Racial discrimination remains a persistent barrier, with 9% of Arab, 7% of Black Caribbean, and 6% of Black African adults reporting that they have faced racial discrimination when trying to access housing. This discrimination could plausibly push up the relative costs of housing for these groups, limiting their options and forcing them to accept less favourable housing conditions.

The overall picture is clear: ethnic minorities are at a disadvantage on nearly every housing metric. They face higher housing costs, lower rates of homeownership, and poorer housing conditions compared to their White British counterparts. That said, experiences vary across different groups. Arab, Bangladeshi, Black African, and Black Other adults consistently face the worst housing outcomes. Meanwhile, Indian and Chinese adults tend to have outcomes that are somewhat closer to those of White British adults.

These findings highlight the urgent need to tackle the UK’s housing crisis—but also to take a closer look at how race and ethnicity shape housing outcomes. Addressing affordability is key, and so too is tackling discrimination in the housing market. The possibility of structural discrimination in housing access demonstrates the need for an official inquiry into housing costs and conditions for ethnic minority households. If Britain is to be a country where everyone, regardless of background, can access decent and affordable housing, we must confront these disparities head-on and develop policies that address the structural barriers ethnic minorities continue to face.

• This article was originally published on the UK Collaborative Centre for Housing Evidence website