The homeownership rate for Black households has grown faster than average since 2019, though it is still lower than its peak from 20 years ago.
According to a new data report from Zillow (NASDAQ:Z, ZG), nearly 46% of Black households own their home, down from its highest point of 49.7% in 2004 but higher than its 43% low point in 2019. In comparison, White households have a 74% homeownership rate.
Zillow pointed out that 24% of Black borrowers having their mortgage application rejected – nearly twice the rate of all applicants (12.6%) and higher than the one-in-10 denial rate for White applicants. Insufficient credit was the most common reason given (43%) for the application rejection; 32% of White applicants are denied mortgages for the same reason.
“While discriminatory policies like redlining have long been outlawed, the damage from these historic practices is still felt today,” said Zillow Senior Economist Orphe Divounguy. “Many communities once barred from accessing credit are now finance deserts, with few traditional financial institutions, making it harder to build credit and buy a house. That’s why it’s so important to expand credit access. Allowing rent payments to count in credit scores is one example of how to move the industry forward.”
