Today I Read that black homeownership rates have barely budged since 1968
Today, Curbed took a look at the current status of black homeownership nearly 50 years after the landmark Fair Housing Act of 1968.
Quick Summary: Despite a federal policy at the height of the civil rights era geared toward improving economic outcomes for black americans, black homeownership rates continue to remain below other racial and ethnic groups and overall have yet to rebound from the recession. As homeownership provides a path to accruing wealth and provides a significant asset to be passed down to future generations, the lack of ownership is also detrimental to overall wealth. Limited access to credit and prime loans are significant barriers to black American homeownership.
Big Takeaway: As black and latino Americans were 2.4 times more likely to receive a subprime mortgage than white homeowners, the recession decimated homeownership rates among minorities.
Something I did not know: At the peak of the housing bubble, close to 50% of black Americans owned homes. By 2017 the figure had fallen to 42.3% — the same as it was in 1994—which itself is only marginally better than in 1970, two years after the FHA passed, when it was 41.6%
Makes me feel/think about: This is another structural issue which requires bold leadership and policies, but should also signal to businesses and entrepreneurs that there is an opportunity to assist black consumers with savings and housing credit vehicles. Of course government policy and business must work hand in hand, but I think that this is a great opportunity to develop a new class of homeowners. Although it is infuriating that homeownership rates are essentially unchanged over the course of 50 years and that predatory policies continue to restrict and hold back economic growth, I believe that innovation is the route to improving these outcomes. I am hopeful!