The gap between White and Black homeowners is highest in Minneapolis, Milwaukee, and Salt Lake City. Nationally, only 44% of Black families own their homes, according to Redfin. This is a slight increase from 41.1% of Black homeowners in the first quarter of 2019, and White homeownership saw a small 0.5% growth year over year with 73.7% owning homes in 2020. The growing numbers of Black homeownership may be in jeopardy due to the pandemic’s effects on employment and the economy. Though Black homeownership saw nationwide growth, some metros have only had a 1% increase from 2012 to 2018, and other metros saw decreases.
“The homeownership gap between Black and white families is a problem that extends far beyond the realm of housing,” said Redfin economist Taylor Marr. “The value many Black families have missed out on because they were impacted by systemic racism in housing could have been passed down to children and grandchildren, paying for things like higher education, childcare, starting a business and down payments on their own home. Instead, younger generations in the Black community are at an unfair financial and social disadvantage.”
Just 25% of Black families in Minneapolis own their home, the lowest Black homeownership rate of any metro area in the U.S. with more than 1 million residents. It’s followed by Milwaukee and Salt Lake City, where only 27% and 28% of Black families own the home they live in, respectively.