One-third (33%) of Black millennials own their home, compared to two-thirds (65%) of White millennials, according to a new data analysis by Redfin (NASDAQ:RDFN). This represents the largest disparity gap in homeownership among any generation.
Redfin determined that White adult Gen Zers are nearly twice as likely as Black adult Gen Zers to own their home, with respective homeownership rates of 30% and 16%. Among older Americans, a little more than half (52%) of Black Gen Xers own their home, compared to 80% of white Gen Xers, while 60% of Black boomers own their home, compared to 85% of White boomers.
Redfin stated that only 7% of homes for sale in 2023 were affordable for the typical Black household, compared to 22% for the typical white household. The median Black worker earns 79 cents for every dollar earned by a White worker, and Black households have $15 for every $100 in wealth held by white households, Redfin added.
“Millennials have consistently tracked behind their parents’ generation when it comes to homeownership because they’ve faced significant financial obstacles and an historic inventory shortage,” said Redfin Chief Economist Daryl Fairweather. “But that number doesn’t tell the whole story: Black millennials have borne the brunt of those challenges because they’re at an unfair financial disadvantage due to the country’s history of racial discrimination. Young Black Americans started out behind largely because they’re less likely to have property and money passed down from their parents or grandparents, who faced racial discrimination themselves, and they have stayed behind because they’re still facing discrimination and unfair economic circumstances.”
