Black homeownership is declining. Why?

Black homeownership is declining. Why?

Homeownership remains out of reach for many young Americans, but it’s especially elusive for Black Gen Zers and millennials. According to a Redfin Real Estate analysis, just 14% of Black Gen Zers and 32% of Black millennials own their home—about half the rate of white Americans in the same generations.

In recent years, the gap has widened as homeownership declined for young Black adults while rising for young white adults.

Homeownership rates have declined for young Black Americans, risen for young white Americans

Black Gen Zers’ homeownership rate fell from 16.3% in 2023 to 14.2% today. Black millennials’ rate dipped from roughly 33% in 2023 to 32% today. The homeownership rate declined for Black Gen Zers and millennials because many people in those categories who formed a new household—such as by moving out of a parent’s home—ended up renting rather than buying.

Meanwhile, homeownership among white young adults increased. White Gen Zers’ homeownership rate rose from 29.7% in 2023 to 31.6% today, while white millennials saw an increase from 65.3% to 66.6%.

It’s hard to afford a home. It’s especially hard for young Black Americans

The homebuying landscape has been difficult in recent years due to high home prices, elevated mortgage rates, and widespread economic uncertainty. These challenges are especially acute for young Americans, who typically have less savings and wealth than older generations.

Among young Americans, Black buyers face additional barriers that make homeownership even more difficult:

• The racial wage and wealth gap. The typical Black worker in the U.S. earns 79 cents for every dollar earned by a white worker. For every $100 in wealth held by white households, Black households have $15. That makes it harder to save money for a down payment and to afford monthly mortgage payments.
• The employment gap. The unemployment rate is 7.1% for Black men, roughly double the 3.7% rate for white men. It’s a similar story for women; the unemployment rate for Black women is 6.7%, compared to 3.2% for white women.
• Discriminatory policies. Past policies like redlining and discriminatory housing covenants caused generations of Black families to miss out on gaining wealth through owning valuable property. Today, there are still systemic barriers to homeownership for Black families; for example, Black homebuyers are twice as likely to have their mortgage applications rejected as white homebuyers.
• Family money gap. Black families are less likely than white families to have generational, inherited wealth. That makes it harder to buy homes. For example, a recent Redfin survey conducted by Ipsos found that 9% of recent Black homebuyers used a cash gift from family for their down payment, compared to 15% of recent white homebuyers.
• Credit scores. The median credit score for Black Americans is lower than it is for white Americans, which makes it more challenging to get a mortgage.

“Black millennials and Gen Zers are bearing the brunt of the racial homeownership gap; ever since they have reached homebuying age, the country has faced significant financial challenges and a major housing supply shortage,” said Redfin Chief Economist Daryl Fairweather. “Young Black Americans started out behind their white counterparts because they’re less likely to have property and family money, due to historical discrimination in housing and employment. Now, they are coming of age during turbulent economic times that have impacted Black workers more than white workers. The Black unemployment rate rose to nearly 17% during both the Great Recession and the pandemic, compared to 9% and 14%, respectively, for white Americans.”

Overall Gen Z and millennial homeownership is rising—but white buyers are driving the increase

A separate Redfin analysis found that overall Gen Z and millennial homeownership rates improved in 2025, largely driven by young white homebuyers.

Another Redfin analysis found that the overall homeownership rate for Black Americans is at its lowest level since 2021. Nationwide, 43.9% of Black Americans owned their home as of mid-2025, down from 45.3% a year earlier. For comparison, 74% of white Americans owned their home, down slightly from 74.4% a year earlier.

The racial homeownership gap is smaller—but still significant—for older generations

A substantial racial homeownership gap also exists among older Americans.

Just over half (53.1%) of Black Gen Xers own their home, compared to 80.6% of white Gen Xers. Among baby boomers, 60.4% of Black Americans own their homes, compared to 85.5% of white baby boomers.

In percentage terms, the racial homeownership gap is smaller for older generations. Homes were generally more affordable when baby boomers and Gen Xers were younger, even for buyers who faced discrimination. Still, a profound gap remains, driven largely by longstanding factors such as historically discriminatory policies and racial income and wealth disparities.

The bright spot for homebuyers is that we expect affordability to start improving this year, as wages grow faster than home prices and mortgage rates tick down. Buyers also hold negotiating power.

Methodology

This data is from a Redfin analysis of the Current Population Survey’s Annual Social and Economic Supplement (March Supplement), from 1976 to 2025. The data was accessed using IPUMS-CPS*.

In this report, homeownership rate refers to the share of households headed by Gen Zers, millennials, Gen Xers, or baby boomers that are owner-occupied, broken down by race. People who are living with their parents or other family members are not included in the calculation for their generation.

Gen Zers were 13-28 years old in 2025; only adult Gen Zers (19-28 years old) were included in this analysis. Millennials were 29-44 in 2025, Gen Xers were 45-60, and baby boomers were 61-79.

This story was produced by Redfin Real Estate and reviewed and distributed by Stacker.