The homeownership rate among Black Americans is lower than that of white Americans, with 46.4 percent of Black Americans owning homes compared to 75.8 percent of white Americans. Homes in predominantly Black neighborhoods are valued at $48,000 less than those in predominantly white neighborhoods, leading to a loss in equity of approximately $156 billion. This disparity is due to a history of unfair lending practices and redlining that began in the twentieth century, creating a housing system that is still biased today.
Black renter households also face difficulties in accessing safe, affordable, and stable housing. In 2020, they were the most likely to be severely cost burdened, spending over 50 percent of their income on housing. As a result, Black renter households were twice as likely as white renter households to be behind on housing payments and twice as likely to report being at risk of eviction.
To address these disparities, cities and local governments across the country have developed programs to increase housing equity for Black homeowners and renters. These programs include financial assistance to eviction prevention, and aim to address historic discriminations in the housing market. For example, the Inheritance Fund in Saint Paul, MN, offers assistance to low-income families from Saint Paul’s historic Rondo Neighborhood to rebuild wealth through homeownership.