There’s no easy way to say this: Black homeownership is in crisis. For years, we’ve been told that owning a home is the gateway to building wealth and creating a better future for our families. Yet, here we are in 2024, and the latest *State of Housing in Black America (SHIBA)* report from the National Association of Real Estate Brokers (NAREB) paints a troubling picture.
Let’s break it down together.
The State of Emergency
In 2023, the Black homeownership rate sat at 45.7%, compared to a staggering 74.3% for White households. To make it plain: while nearly three out of every four White families own homes, fewer than half of Black families can say the same. And here’s the kicker—Black homeownership hasn’t been this low since 2004, when it peaked at 49%.
It’s not just a number. It’s a warning.
As Dr. Courtney Johnson Rose, NAREB’s President, put it, “The SHIBA report confirms that we are in a state of emergency.” She’s right. Homeownership isn’t just about having a roof over your head; it’s about building wealth, creating stability, and passing something on to the next generation. When we miss out on this, we’re not just losing homes; we’re losing opportunities to close the racial wealth gap.
The Decline of Black Female Homeownership
Let’s talk about the powerhouse of our community—Black women. For years, Black women have been leading the charge in buying homes, even as single heads of households. But according to the SHIBA report, that momentum has stalled.
– Black women’s mortgage applications dropped by 24% in 2023 compared to 2022.
– The steady rise we saw in homeownership applications from Black women after the Great Recession has been reversed, and we’re seeing fewer applications than we have in years.
This isn’t just disappointing—it’s alarming. Black women have been pillars in our families and communities. If they’re finding it harder to buy homes, that’s a red flag for everyone.
Black Millennials: Losing Ground
Now, let’s talk about the group that should be keeping this train moving—Black millennials. These are the folks who were supposed to carry us forward, and for a minute, they were doing just that.
– In 2020, home loan applications from Black millennials jumped by 28%. It looked like a new era of ownership was on the horizon.
– But by 2023, those numbers had dropped by 21%.
What happened? Rising home prices, high interest rates, and systemic barriers like discriminatory lending practices have all played a role. And when millennials stop buying homes, it doesn’t just hurt them—it limits the potential for intergenerational wealth.
The System Is Still Broken
Let’s keep it real. The mortgage system in this country is stacked against us. Here are some cold, hard facts from the SHIBA report:
– Mortgage denial rates for Black applicants are more than double those for White applicants—17% versus 7%.
– Even when Black folks get approved, we’re more likely to receive **high-cost loans** with worse terms than our White counterparts.
– Homes in Black neighborhoods are often appraised at lower values than similar homes in White neighborhoods.
Y’all, this isn’t about personal responsibility. This is systemic. It’s about a system that continues to deny us access to the tools we need to build wealth and stability.
Natural Disasters and Disproportionate Risk
Here’s another layer to this crisis: climate change. Did you know that 21% of Black people are highly exposed to hurricanes, compared to just 11% of White people? Add to that the risks of flooding, wildfires, and heat waves, and you’ve got a recipe for disaster—literally.
When you combine this with the challenges of securing affordable insurance and rebuilding after disasters, it’s clear that Black communities are disproportionately vulnerable.
A Faith-Centered Call to Action
So, what do we do? As a follower of Christ, I believe in the power of community and collective action. We’re not just called to sit on the sidelines and hope for change; we’re called to be the change.
The SHIBA report isn’t just a set of grim statistics—it’s a wake-up call. NAREB’s President said it best: “We need all hands on deck.” That means public, private, and non-profit organizations working together to reform lending practices, create affordable housing, and educate our community about the path to homeownership.
But it also means we have to step up. Whether it’s mentoring young people on financial literacy, pushing for policies that benefit Black homeowners, or simply starting conversations about what homeownership can mean for our families, we all have a role to play.
Why This Matters
If we don’t address this crisis now, we’re not just failing ourselves—we’re failing the next generation. Homeownership is one of the most powerful ways to build wealth and create stability. If we’re serious about
Download full State of Housing in Black America (SHIBA) Report
By Nadene Long- Broker & Owner of Wealth Partners Realty Group, LLC
210-570-9009
nadene@wealthpartnersrealtygroup.com