Black homeownership rate hits the lowest level since the 1960s
February 21, 2022
As we close out Black History Month, it is important to point out that homeownership among African Americans has dropped to its lowest level since the 1960s. Homeownership is one of the foundational steps in building wealth including generational wealth. In fact, in the past 15 years, Black homeownership has seen the most dramatic drop of any racial or ethnic group, and the Black homeownership rate in 2019 had descended to nearly as low as it was when discrimination was legal. [1]
Adding to the problem, according to a new analysis from NAR and Realtor.com (2/7/22) - The surging residential real estate market of the last two years led to record-high home prices and record-low inventory. This simultaneous "double trouble" has made it increasingly difficult for consumers, particularly Black Americans, to achieve homeownership. [Nar.realtor February 7, 2022]
In recent years there have been efforts to increase the percentage of black ownership, such as programs to assist with down payments and credit repair. Some large banks and government agencies have also made commitments to Black communities. In addition, the Biden administration has outlined numerous plans to close the racial wealth gap with programs such as addressing appraisal bias. There is no one solution to this program and most economists agree that increasing Black ownership benefits, not just Black families but the entire community and national economy.
[1] FSC Majority Staff (2019, May 8). A Review of the State of and Barriers to Minority Homeownership. [ Memorandum] p. 3. United States House of Representatives Committee on Financial Services. Retrieved from https://financialservices.house.gov/uploadedfiles/hhrg-116-ba04-20190508-sd002_-_memo.pdf
