Black Homeownership Lags Behind Other Racial Groups Despite Gains

White Americans still dominate America’s homebuying landscape despite gains among Black buyers.

The National Association of Realtors’ 2025 Snapshot of Race and Home Buying in America found that the Black homeownership rate rose the most year-over-year in 2023 among racial groups, but still stands far behind rates for white (72.4%), Asian (63.4%), and Hispanic (51%) homeownership.

White, Asian, and Hispanic homeownership stayed relatively flat in 2023, with the first two registering 0.1% gains while the latter dipped by 0.1%. At the same time, the share of Black homeowners jumped 0.6% to 44.7%.

Hispanic Americans have seen the largest increase since 2013, up 5.8% or 3.5 million homeowners, while only 1.2 million more Black Americans were able to purchase a home in the years since.

Plus, even with that improvement, the Black-White homeownership rate gap has widened in that time period.

Renting is a burden for anyone looking to save money for a home, with almost half of all renters reporting being cost-burdened (spending more than 30% of their income on rent.) But Black renters face far greater affordability challenges than their white counterparts.

“Non-White home buyers are more likely to be first-time buyers, underscoring the importance of changing demographics and the age of local populations, which will increase non-White homeownership over time,” said Jessica Lautz, NAR deputy chief economist and vice president of research.

Black (21%) and Hispanic (17%) applicants face significantly higher mortgage denial rates compared to White (11%) and Asian (9%) applicants.

Black Americans also face challenges ranging from the impact of racist housing policies in the past to modern-day redlining scandals. 

“Millennials have consistently tracked behind their parents’ generation when it comes to homeownership because they’ve faced significant financial obstacles and a historic inventory shortage,” Redfin Chief Economist Daryl Fairweather commented.

“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.”

They are twice as likely to be rejected for a mortgage than white buyers and tend to have higher interest rates even when they are accepted. In today’s high-cost environment, with mortgage rates in the mid-6%s, those barriers are detrimental.