Only 33% of Black millennials own their home as opposed to nearly two-thirds of their white counterparts, according to a Redfin analysis of the Current Population Survey Annual Social and Economic Supplement in 2023.
The gap between Black and white millennial homeowners is the largest of any generation, but Black people in general are much less likely to own their home than white Americans at any age.
The analysis said high home prices, elevated mortgage rates and a supply shortage are causes for the racial homeownership gap in addition to racist policies such as redlining and discriminatory housing covenants. The analysis also said Black Americans frequently face discrimination when going through the homebuying process.
Moreover, the analysis said the Great Recession, which took place roughly from December 2007-June 2009, impacted Black millennials earning power by their increased unemployment rate 16% as opposed to whites, 9%.
Plus, Black millennials were adversely affected by the tight lending standards implemented by financial institutions after the Great Recession more than their white counterparts.
“Millennials have consistently tracked behind their parents’ generation when it comes to homeownership because they’ve faced significant financial obstacles and an historic inventory shortage,” said Redfin Chief Economist Daryl Fairweather. “Young Black Americans started out behind largely because they’re less likely to have property and money passed down from their parents or grandparents, who faced discrimination themselves, and they have stayed behind because they’re facing discrimination and unfair economic circumstances.”
However, Fairweather is optimistic about Black millennial home owning in the future, saying “the Black unemployment rate is at an all-time low and the racial wage gap is shrinking, which should help more young Black Americans get their feet in the homeownership door.”
