{"id":2776,"date":"2023-02-08T09:27:28","date_gmt":"2023-02-08T14:27:28","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2776"},"modified":"2024-04-25T23:18:10","modified_gmt":"2024-04-26T03:18:10","slug":"update-on-black-real-estate-wealth-trends-in-2023","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/update-on-black-real-estate-wealth-trends-in-2023\/","title":{"rendered":"Update on Black Real Estate Wealth Trends in 2023"},"content":{"rendered":"\n
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In the Black community today, just one in every five households can afford to shift from renting to buying the median priced U.S. home. That\u2019s according to the National Association of REALTORS\u00ae. NAR says Black homeownership is down over the past decade, and lagging behind that of other groups.<\/p>\n\n\n\n

The trend will not reverse itself on its own. Why not? Because the real estate wealth gap between minority and non-minority residents is tied to a historically uneven playing board. It was tilted on purpose (more on that below). So, the industry needs to be just as purposeful in ensuring that the board becomes level.<\/p>\n\n\n\n\n\n\n\n

Redfin Finds Reasons for Hope, and Room for Improvement<\/h2>\n\n\n\n

In 2021, Redfin\u2019s chief economist pointed out that Black households own $2.2 trillion worth of U.S. real estate, and that\u2019s a record high. The actual equity \u2013 in other words, the home\u2019s value, after subtracting the owners\u2019 mortgage debt \u2014 stood at an all-time high of $1.4 trillion.<\/p>\n\n\n\n

Of course, a major factor was the amazing rise in property values for all homeowners in 2020 \u2013 2021.<\/p>\n\n\n\n

 \u261b <\/em>Home equity is wealth<\/em><\/strong><\/a> built up by a homeowner over time. Equity is the paid-off amount of the owner\u2019s property value.  <\/em><\/strong><\/p>\n\n\n\n

That said, Redfin notes that the portion of real estate wealth held by Black homeowners is still small: it\u2019s just 6%. Recall that 13% of the U.S. population is Black. And Redfin also says the white non-Hispanic population holds approximately 76% of U.S. real estate value.<\/p>\n\n\n\n

After the big housing market crash, Black homeownership suffered greatly. During the financially bleak few years starting in 2007, minority homeowners experienced double the rate at which white households were foreclosed. Many of the defaulting homeowners had risky, high-interest mortgages that were difficult to pay off when values sank.<\/p>\n\n\n\n

Their crushing losses are reverberating down through generations. To this day, most Black households rent. After the housing crash came lawmaking to prevent any repeats. Since then, most lenders use a very rigid set of criteria to approve mortgage applicants. The applicants who haven\u2019t built up any home equity have the most difficulty when trying to get home loans.<\/p>\n\n\n\n

Homeownership Equality Varies \u2013 State to State, City by City<\/h2>\n\n\n\n

In much of the southern region of the United States, large Black populations have helped ensure a fairer situation. But in some other states, the disparity in ownership statistics is striking:<\/p>\n\n\n\n