Homeownership among Black Americans drops to 4-year low

The homeownership rate among Black Americans fell to 43.9% in the second quarter of 2024, the lowest level since late 2021, according to Redfin.

That was down from 45.3% a year earlier and marked the steepest annual decline since the third quarter of 2021.

By comparison, the Hispanic homeownership rate rose slightly to 48.8% from 48.5%. The rate for non-Hispanic white households dipped to 74% from 74.4%, and the Asian/Native Hawaiian/Pacific Islander rate slipped to 62.1% from 62.8%, the report said.

“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” said Redfin Chief Economist Daryl Fairweather. “The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers. DEI programs have also been dismantled in workplaces across the private and public sectors, which may have resulted in fewer Black employees being hired or promoted.”

The unemployment rate among Black Americans stood at 7.2% in July — up from 6.3% a year earlier and the highest since October 2021.

Rates for other groups remained relatively steady — with Hispanic/Latino unemployment falling to 5% from 5.3%, white unemployment inching down to 3.7% from 3.8%, and Asian unemployment rising to 3.9% from 3.7%.

Black women have faced some of the sharpest increases in joblessness. Their unemployment rate climbed to 6.3% in July from 5.5% a year earlier. For Black men, the rate was higher overall but rose less dramatically to 7% from 6.6%, Redfin said.

A 2024 analysis by the National Association of Realtors found that single women accounted for 33% of Black homebuyers — compared with 12% for single men.

High housing costs and elevated borrowing rates have posed barriers to homeownership in recent years.

The average 30-year fixed mortgage rate has recently fallen below 6.5%, down from a peak above 7% at the start of the year.

“Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing,” Fairweather said. “For Black households who feel locked out of the American dream, the good news is that affordability is improving as mortgage rates come down, home prices are growing at less than half the pace they were a year ago, and buyers have been gaining negotiating power.”