Number of Black First-Time Homeowners Hits Record High Despite Challenges

Following several years of declines, Black homebuying is rebounding, according to a recent survey by housing app and real estate marketplace Zillow. Looking back at data from the past several years, Black first-time homeownership increased to 63% in 2023 from a low of 35% in 2021. However, despite these gains, structural barriers continue to limit opportunities for Black homebuyers, and high housing costs and restrictive building policies disproportionately affect Black and lower-income households. Black households also have to contend with the steepest affordability gaps. 

The typical Black household could afford just 18% of homes for sale on Zillow in 2024. This is compared to 38% for white households that year. Before the pandemic, those numbers were 34% and 61% for Black households and white households, respectively. Despite a steeper decline in the share of home listings that were affordable to the median earner, Black homeownership increased more than white homeownership during that same time period.

The markets where a typical Black household could still afford the monthly mortgage payment were St. Louis (30.3% of listings were affordable in 2024), Birmingham (29.5%) and Memphis (29.0%). Those were followed by Detroit (28.6%), Baltimore (25.8%), Pittsburgh (23.7%), Cleveland (22.8%), Indianapolis (22.0%), Atlanta (19.2%) and Oklahoma City (18.8%). The worst markets for potential Black home buyers were on the West Coast in California and in Seattle. Read more