Nearly 25 years ago, Maria applied to Black Hills Area Habitat for Humanity’s homeownership program in the hopes of providing a safe and stable home for her five children. As a residential cleaner and the children’s only caretaker, she hadn’t been able to find steady housing that accommodated their needs and budget.

“It took faith for me to be able to apply for this program — faith in God and in the hope that everything was going to be OK. My children were the motive through it all,” says Maria. “It was through the grace of God that I was able to qualify for the program and I became a homeowner.”

Since then, her children have grown up, attended college and started careers of their own — milestones that Maria credits to having a safe roof under which they could grow in health and in comfort.

Now, all these years later, in front of the home that has protected her children into adulthood, Maria gathered with a small group of friends and supporters. They celebrated her final mortgage payment, and in Habitat tradition, they burned the mortgage papers she signed back in 1996 — a ceremonial recognition of the completion of her partnership with Black Hills Area Habitat.

“May the fire of this symbolize the fire that all of you have in your heart that God placed in you,” she said as the papers caught fire and emotion caught in her voice. “Never let the flame of your love for charity, for others, extinguish.”

Black and Hispanic/Latino households face unique barriers to homeownership that prevent access to the beneficial outcomes associated with homeownership, such as wealth building, improved health and higher educational attainment. Historically, structural and institutional obstacles faced by racial and ethnic minorities compounded over time to produce these inequities.

Through a series of evidence briefs, Habitat is bringing to light research on the impact that affordable housing has on individuals and families at home and beyond. This brief provides an overview of the barriers to homeownership that Black and Hispanic/Latino households face and the far-reaching effects of these obstacles. Check out our highlights below and download the full brief.

Research highlights

Brief history of racial inequities in housing

• Starting in the 1930s, the federal government began a practice of “redlining,” or refusing to guarantee mortgages for homes in communities where households of color lived. While this was largely targeted toward Black households, the discrimination impacted all homebuyers of color, including Hispanic/Latino households.
• This severely limited access to mortgages for Black homeowners. Between 1934 and 1962, households of color received only 2% of all government-backed mortgages.
• The Federal Housing Administration also encouraged practices aimed to segregate communities of color. These included racially restrictive deed covenants, strict zoning ordinances and social enforcement of racially segregated neighborhoods.
• Many Black households were also forced to pay higher rents in segregated communities, due to limited rental supply and increased demand, and those looking to instead purchase a house often faced inflated home prices that frequently resulted in home loss. Urban renewal efforts also leveled many Black and integrated neighborhoods under the guise of new development, which often never materialized.
• These racial policies and practices led to the ghettoization of Black communities, as these communities confronted a lack of resources, disinvestment and overcrowding. Many of these communities were located near environmental hazards, further driving down property values and trapping residents in these areas.

Key barriers to accessing affordable homeownership for Black and Hispanic/Latino homebuyers

• Higher income and wealth and greater access to credit are associated with higher homeownership rates, but Black households’ income and wealth distributions are notably lower than those of white households, and they are less likely to have sufficient credit.
• Systematic inequities hamper homeownership rates for households of color — as much as 17% of the homeownership gap cannot be explained by sociodemographic factors.

Key barriers to building home equity for Black and Hispanic/Latino homebuyers

• Black and Hispanic/Latino homebuyers use more debt to finance homeownership and have more expensive mortgage terms. On average, Black homebuyers pay 29 basis points more than comparable white homebuyers. Homes purchased by Black homebuyers tend to be lower-valued, appreciate more slowly and have higher property taxes.
• Black and Hispanic/Latino households are less likely to sustain homeownership. Less than half of homeowners of color with low income remained homeowners within four years of becoming a homeowner, compared with 60% of white homeowners with low income.

Key place-based barriers to improving racial disparities in health

• Black and Hispanic/Latino populations with low incomes tend to live in the least desirable neighborhoods with fewer health-promoting characteristics.
• Black and Hispanic/Latino populations are more likely to live in substandard housing conditions that create unhealthy environments.

Key place-based barriers to improving racial disparities in education

• Black and Hispanic/Latino students remain concentrated in segregated, high-poverty neighborhoods with low-performing schools. About 45% of Black and Hispanic/Latino students attend high-poverty schools.

Habitat for Humanity volunteers make our mission happen. With their passion and determination, they help families build and repair homes, revitalize neighborhoods and help change policies so that even more can benefit from affordable homeownership.

In the midst of the COVID-19 pandemic, our dedicated volunteers set out to use their skills in new, creative and socially distanced ways. They helped their neighbors at a time when safe, decent housing has never been more crucial.

Read on and be inspired by some of the ways housing champions across the country have continued to use their time and talents to help others. We certainly have been!

In 1991, five volunteers opened Habitat for Humanity’s first-ever ReStore in Winnipeg, Manitoba. Their vision was clear: keep new and used home and building materials out of the waste stream while helping fund Habitat’s home-, hope- and community-building work. Customers came from all over to find deals on windows, doors, paint, hardware, tools, furniture, appliances and decor to spruce up their own homes while helping others build and secure theirs. Based on this reception, the concept quickly spread.

As of 2021, there are more than 1,000 ReStore locations across six countries, all contributing to Habitat’s vision of a world where everyone has a decent place to live. Since most of the merchandise for sale in these stores is donated by local residents and businesses, no two ReStores are exactly alike — and neither are their beginnings.

Austin, Texas

A year after the first store opened in Canada, Austin Habitat brought the ReStore to the U.S. with the opening of its first store in Austin, Texas, in 1992. While the store has kept more than 33 million pounds of goods out of landfills, one of the store’s most sustainable endeavors has been the building itself.

In 2015, Austin Habitat converted a former pizzeria arcade into a space housing both their administrative offices and their ReStore operations. Austin Energy Green Building awarded it with a 4-star rating because the building reused 96% of the previous structure and features a 260-kilowatt solar array supporting 100% of the Austin ReStore’s annual electricity usage.

Warsaw, Poland

In March 2020, Habitat Poland opened their — and eastern Europe’s — first ReStore in Warsaw. Within the first 12 months of operation, the store has saved more than 350 tons of products from the trash. Recently, staff began offering educational resources and activities about sustainable development — and Habitat’s role in it — to children in area schools.

One of these resources, titled “Kazik’s Couch, or A Fairy Tale About Responsible Consumption,” focuses on the importance of helping by giving, sharing goods and respecting resources. The resources include materials for teachers, trainers and parents to guide young students through the story’s themes.

Mechanicsville, Virginia

In 1991, the same year ReStore was getting its start in Canada, Hanover Habitat, now known as Hanover and King William Habitat, came onto the scene in Mechanicsville, Virginia. That year, Delois, a widowed seasonal farmhand, became the affiliate’s first homeowner. Her new home had strong upright walls, indoor plumbing, a full roof and windows that closed — all features that her previous living arrangements lacked.

After 12 years safe and sound in that Habitat home, Delois passed away at age 73. With no descendants of her own, she arranged to leave the home to one of the most important entities in her life: Hanover and King William Habitat. A short biography by an unnamed Habitat volunteer noted that this had always been Delois’ plan, even before construction on her house began. “She wants to make Habitat the beneficiary in her will,” it reads. Her hope in doing so was that another family would be able to find a sense of safety and security, like she would, in their new home.

In 2005, Hanover and King William Habitat sold the home to another family and used the proceeds to start the Hanover ReStore. The store would provide a self-sustaining funding source for Habitat’s work in and with the local community — and it has. As of 2021, Hanover ReStore has contributed more than $2.35 million to the mission of building decent and affordable homes. Delois’ gift has helped 50 families move into new Habitat homes and 17 more improve their existing homes through a new critical repair program funded by revenue from the ReStore.

In the summer of 2021, nearly 30 years to the day of Delois’ groundbreaking, Hanover Habitat expanded its service area to neighboring King William County — hence the name change — allowing them to partner with even more families in need of a decent, affordable home. “Through the ReStore and Hanover Habitat, her legacy will live on forever,” says Amanda Gunter, director of community engagement for the affiliate.

A peek into the present

Communities, customers and ReStores across the globe are always finding new and impactful ways to partner to support Habitat’s mission of bringing affordable housing to their neighborhoods.

Tampa, Florida

In the months leading up to football championships, there’s often a buzz of constant construction so the host city is ready to accommodate guests, players, media and more. But have you ever wondered what happens to all that stuff once it’s over?

After Super Bowl LV in Tampa, CBS Sports donated the lumber from their dismantled risers, staging, stands and more to Habitat Hillsborough’s ReStore so they could find a new use while financially supporting the creation of affordable housing in the local community.

ReStore-hopping across the U.S.

Michael and Rebecca Roth have traveled the states over weeks-long vacations as well as weekend getaways in “Little Red,” their teardrop camper outfitted with finds from ReStores. Michael’s dad, Arnie, headed up the project. “He built everything from the frame to the interior, with several key pieces in the galley coming from the Habitat La Crosse Area ReStore in Wisconsin and Two Rivers Habitat’s Rochester Area ReStore in Minnesota,” says Rebecca.

The ReStore items — including a three-drawer bathroom cabinet that now serves as kitchen storage, the sink and countertops — helped keep costs for the renovation low, while contributing to a cause the whole family can get behind. “I’ve done a teacher build with Habitat in Tennessee, and my father-in-law and mother-in-law completed one in Nepal,” Rebecca says. “Now, a lot of what they use for remodeling projects come from the ReStore.”

Sacramento, California

“There is so much good stuff at the ReStore, but some people might not know how to repurpose it into something they can enjoy,” says Dina Kupfer, reporter and anchor for Good Day Sacramento. That was the inspiration behind the creation of her morning Dina-I-Y segment.

In the segment, Dina and her team head to the Habitat Greater Sacramento ReStore, pick an item and, alongside ReStore staff, show people how they can make something fresh with it. “We’ve made so many things, but one of my favorites was making a succulent plant stand out of loose dresser drawers,” she says. “We made those two years ago, and it’s still in my garden now.”

Not only has it been fun, she says, but it’s also been incredibly rewarding. “Every time we do a segment in the morning, the ReStore gets a ton of people through their doors that afternoon,” she says. “It’s been great to see people embracing the ReStore, because not only does it give new purpose to these items, but it helps Habitat, our community and the people around us.”

Habitat ReStore by the numbers

• New Zealand has a strong thrift shop culture, and its 22 ReStores stores are well supported across the country to help fund the mission. With a population of over 5 million, the country might just have the most ReStores per capita than anywhere else in the world!
• Volunteers across Habitat Northern Ireland’s four ReStores contributed an average of 2,500 hours of service every month of 2020, aiding in the store’s ability to keep prices low and sales — and impact — high. 
• In 2020, sales at the Habitat Philadelphia ReStore raised enough money to complete repairs on 14 homes of seniors and veterans.
• Habitat Milwaukee’s deconstruction team salvaged more than $470,000 worth of materials from 98 different demolition and remodeling projects around the city in 2020. After they’re collected, the items — everything from kitchen cabinets to HVAC systems — are put up for sale at the affiliate’s three ReStores.
• In 2020, 99,033 customers purchased 426,427 items from Asheville Area Habitat’s two ReStores to help build homes and hope in western North Carolina.

Since 1991, your support has allowed Habitat to partner with more families in more places to build and improve their homes — all while making our planet a cleaner, healthier place. With every purchase from the ReStore helping fund our building and revitalization projects, together we’re moving closer to a world where everyone has a decent place to live.