From October 2020 to September 2021, just 9.1% of total U.S. buyers were Black, and only 43.1% of Black households were homeowners in the fourth quarter of 2021 in comparison to 74.4% of white property owners, Realtor.com reports. Housing discrimination has hit Black buyers the hardest during the COVID-19 pandemic, particularly as a foreclosure crisis disproportionately impacted communities of color.
As rising inflation, rents, mortgage rates, and median home prices lock a growing number of buyers out of homeownership, Black households are affected the most. Due to decades of systemic racism and workplace discrimination, some Black Americans earn almost $30,000 less than white Americans on average, according to census data, making it difficult to compete with record price gains, bidding wars, and all-cash offers in a tense market.
“For many Black families, the housing market has not offered opportunities on par with the strong economy and job market. Mortgage rates have dropped, but even with that, Black buyers have not reaped the benefits,” says George Ratiu, manager of economic research at Realtor.com. “Homeownership can provide stability and help launch families into the middle class.”
Ending housing discrimination and helping more Black Americans build wealth through homeownership has been one of the priorities of President Joe Biden‘s administration. However, record-low numbers of homes for sale leading to new all-time high prices, bidding wars, and all-cash offers have been a struggle for most buyers, particularly those of color.
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