The National Association of Real Estate Brokers (NAREB) released its annual State of Housing in Black America report, pointing out that “major gains in Black homeownership are unlikely in the foreseeable future without significant housing market interventions.”

Despite a historic low gap in labor force participation rates between Black and white households, the gap in homeownership rates between the two groups is larger than it was more than half a century ago.

The report details how lower incomes and fewer assets, soaring mortgage rates, inadequate supply of new homes, and Black communities’ disproportionate vulnerability to climate change have limited the potential for increasing homeownership for Black households.

Unfavorable housing market conditions along with housing finance institutional biases have been major impediments for Black homeownership gains. The surge in single-family home purchases by investors has also negatively impacted the affordability and supply of homes available, particularly lower income households.

In the face of these barriers, NAREB has continued to advocate for policy changes to improve Black homeownership. One initiative they have commended is the Federal Housing Finance Administration and GSEs taking steps to remove blockades to Blacks seeking mortgage credit.  

The complete report includes NAREB’s recommendations, a summary of the mortgage data, and other insights into this topic.