Skip to main content


Racial Disparities in Homeownership

The racial gap in homeownership is staggering. Nearly a 30 percentage point difference currently separates the white homeownership rate (now over 70%) from that of Black and Hispanic households. A history of redlining, which denied Black households access to credit, has played a significant role in depressing minority homeownership. Disparities in homeownership also contribute to the racial wealth gap, as owning a home and building equity is the primary means to accumulate wealth in the United States.

Shortage of Affordable Homes for First-Time Homebuyers

After decades of decline, the supply of entry-level housing is far too low to meet the rising demand of first-time buyers. Developers are not building enough starter homes: only 65,000 entry-level homes were built in 2020 compared to nearly 420,000 in 1970. Since the scarcity of entry-level homes inflates prices, it not only makes them harder to find but more expensive too. Other barriers to first-time homeownership exist: wages remain stagnant and potential buyers have high levels of student loan debt. Many homebuyers are struggling to afford down payments.

Read Next

See other explainers:

Support Research Like This

With your support, BPC can continue to fund important research like this by combining the best ideas from both parties to promote health, security, and opportunity for all Americans.

Give Now