Let’s Keep The Momentum Going
In April, we celebrated Financial Literacy and the signing of the Fair Housing Act. While both are critical initiatives, bridging the racial homeownership gap is more than a 30 day effort. Let’s keep the momentum going.
The Importance of Generational Wealth
Despite gains made after the signing of the Fair Housing Act in 1968, currently 71 percent of Asian Americans, 54 percent of Hispanic Americans, and 63 percent of White Americans can afford to buy the typical home compared to only 43 percent of Black Americans.
Black homeownership rates have been in decline for the past twenty years. And since homeownership remains the main engine for wealth building, this decline is affecting generations to come.
The lack of generational wealth means large debts like student loans may prevent Black homebuyers from securing a mortgage. According to the National Association of REALTORS® 2021 Snapshot of Race and Home Buying in America, Black homebuyers reported an average amount of $40,000 in student loan debt.
Black homebuyers were also found to be rejected for mortgage loans at a rate 2.5 times greater than White applicants. The main reason? Debt-to-income ratios.
Education Is Key
As first generation homebuyers, many youth in underserved communities are frightened by the overwhelming process of buying a home. keep reading