Today, the racial homeownership gap between Black and white households in the U.S. is nearly 28%. As of 2024, 74.2% of white households own their homes, as compared to 46.5% of Black households and 49% of Hispanic households. We all benefit when homeownership is accessible to everyone. While many people experience barriers to homeownership, aspiring Black homeowners are most hindered by discriminatory policies and practices that limit access to affordable housing.
Systemic discrimination has persisted into present policy, from redlining to inequitable access to mortgage credit. Taken together, these practices are barriers to saving for a down payment, getting a loan and affording a home – and they threaten the vitality and prosperity of every community.
Habitat’s Advancing Black Homeownership initiative includes financial coaching and counseling, estate planning to preserve intergenerational wealth, developing low barrier approaches, advocacy outreach and collaborative efforts with affordable housing partners. Together, these efforts form a comprehensive approach to increasing equity and opportunity in homeownership, which benefits everyone.
Our comprehensive strategy for advancing Black homeownership
Across the U.S., Black families are less likely to own their own homes than white families. During Habitat’s 50-year history, our work has helped close that homeownership gap; in FY2021, Black homeowners made up 43% of the families who partnered to build with us. But we must do more:
- Be proactive.
- Ensure everyone has a seat at the table.
- Work collaboratively.
Habitat works to help address disparities in U.S. home buying, home financing and exclusionary zoning practices, which have prevented generations of Black families from accessing the intergenerational wealth-building potential of homeownership.
Leveraging funds provided in part through MacKenzie Scott’s $436 million transformational donation, this work includes:
- Funding opportunities for U.S. Habitat affiliates engaged in innovative work to increase Black homeownership locally.
- Financial coaching and counseling for applicants along their homeownership journey, whether they become Habitat homeowners or not.
- Research and measurement efforts to identify best practices in areas such as housing innovation, preserving home affordability, and exploring how new and existing programs lead to better outcomes for individuals and families.
- Advocacy for policy proposals and legislation that enable millions of people access to affordable homes through Habitat Voices in Action, our U.S. advocacy initiative.
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As part of our +You thought leadership series, a group of experts gathered for a livestream event to explore the deep-seated inequities in America’s housing market – and the steps necessary to create more inclusive housing practices.
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Leveraging the power of storytelling and art, the exhibit aims to catalyze a movement to reduce the racial wealth gap by inviting visitors to experience and visualize the multitude of factors that contribute to housing inequities in the U.S.
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Mary Kay Huss, Richmond Metropolitan Habitat chief executive officer, talks about historic housing discrimination and what Habitat is doing to help advance Black homeownership locally.
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The homeownership gap between Black and white households is more prominent in Minnesota’s Twin Cities than in any other metropolitan area, with the nation’s largest Black and white homeownership gap at 51 percentage points — more than 20 percentage points above the national average. Learn how Twin Cities Habitat is responding to the challenge of closing the gap.