On the heels of NAR’s recent report on homeownership rates for racial minorities, Redfin is out with new numbers that point to major disparities amongst millennial homeowners. Just 33 percent of Black millennials own their home, compared to 65 percent of white millennials—the largest gap of any generation,
It is important to note that in the U.S. currently, Black Americans are much less likely to own their home than white Americans at every age.
Just over half of Black Gen Xers own their home, compared to 80 percent of white Gen Xers. Baby boomers have the smallest percent gap.
“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.”
Last year, just 7 percent of homes for sale were affordable for the typical Black household, compared to 22 percent for the typical white household.