Homeownership remains elusive for a significant number of Americans, particularly Black Americans, as highlighted in a recent report from LendingTree. The study reveals a disparity in homeownership rates between Black individuals and the overall population in the largest metropolitan areas of the United States.
Across the 50 largest metropolitan areas in 2022, Black people constituted an average of 14.99% of the population but owned only 10.15% of owner-occupied homes, according to the report. These percentages remained relatively constant from the previous year. In Memphis, Tennessee, where nearly half the population is Black, they own approximately 36% of the homes.
Jacob Channel, a senior economist at LendingTree, emphasized the comparatively low homeownership rates among Black individuals, pointing out that they face disproportionately challenging barriers to becoming homeowners.
The study, based on the 2022 American Community Survey, underscores the income disparity as a significant hurdle. Median income for Black households was $51,374, significantly lower than the $79,933 for white households, according to U.S. Census Bureau data. Income disparities affect the ability to save for a down payment and qualify for mortgages, especially given the persistently high home prices and interest rates.
Additionally, the tax system, with its mortgage interest deduction, tends to favor those who can already afford homes, according to Sarah Hassmer, the director of housing justice at the National Women’s Law Center. While some localities offer down payment assistance programs, this support is not widely reflected in federal tax policies.
Experts stress the importance of addressing these structural issues to enhance homeownership opportunities for Black individuals. Despite the complex challenges, there is a consensus that sustained effort and focus are essential to combat racial inequality in homeownership.
