Black homeownership is staying strong despite affordability challenges
High home prices and bias in mortgage funding haven’t stopped the dream of Black homeownership, which a reverse migration back to the South and cheaper mid-sized cities is helping with. Special programs are available to help with down payments and heirs claiming property rights. Black families share living expenses and support each other in multi-generational housing, which may also be a path to generating income as a landlord and paying off the mortgage faster.
In 2025, the National Association of Realtors reported that Black Americans had the greatest year-over-year increase in 2023 among racial groups, but still trailed behind white homeownership. Other issues, from global warming to rising insurance rates, have also created hurdles, but black Americans determined to own homes are adjusting migration patterns and tapping into alternative funding.
What Trends Are Impacting Black Homeownership?
Black Americans’ geographic patterns display a common trend: many people returning to their ancestral roots in the South.
As noted in the book The Warmth of Other Suns, the Great Migration was a historical event that changed the fabric of the United States as black Southerners migrated to the North and West in record numbers, creating Black-dominated cities such as:
- Detroit
- Chicago
- New York
As gentrification and housing prices in major cities increase, a reversal is taking shape as more black people are heading back to the South to enjoy more:
- Acres of land
- Cheaper housing prices and taxes
- Deeper cultural connection
The suburbs come with more square footage, especially in mid-sized cities where the cost of living is lower. Atlanta, Georgia, continues to be one of the top areas in the nation for black professionals, and Black homeownership stands at 55%, per Scotsman Guide.
Global warming has affected the entire planet, with Black homeownership creating a dilemma. Black neighborhoods and homes have a higher exposure to climate hazards like heat and wind.
Many are also disproportionately located in flood zones.
The skyrocketing costs of home insurance premiums are linked to the impact of billions of dollars in damage that many weather-related events caused. It’s continuing to spike in certain ZIP codes with higher percentages of black and brown homeowners.
Wealthier developers are often targeting safer, higher-elevated Black areas and pushing them towards more hazard-prone areas near coastlines. While Black Americans can proactively choose to move inland, it will require more significant capital.
How Is Multi-Generational Living Helping?
Multi-generational living is nothing new for African Americans. With an unstable economy and Black Americans getting even more serious about buying a house, many are returning to this long-standing tradition where extended relatives and grandparents live together and pool resources.
This strategy can help multiple adults in the family meet strict debt-to-income ratios to qualify for mortgages and cover other expenses, like utilities and emergency repairs. Children also benefit from being around grandparents and other older adults while parents don’t have to spend more money on outside care.
Plus, relatives involved in the trades can share labor for routine home upkeep and property protection that:
- Keep the home up to date
- Increase equity
- Improve odds of keeping the home in the family
Savvy Use of Rentals
Another good thing about multi-generational housing is having space to use for rentals. To build equity and more capital, many are buying a multi-family property to live in one unit and rent out the others to cover the mortgage.
This same approach can work with a one-family home. A finished basement can qualify as an apartment to rent out as long as it meets specifications, such as:
- An egress window
- Minimum ceiling height
- Separate entrance
- Zoning laws regarding Accessory Dwelling Unit (ADU)
Cypress property management can help you manage your units and handle anything from rent collection to repairs.
How Are Black Buyers Accessing This Wealth-building Strategy?
Those focused on owning a home are finding varied avenues of support through:
- Down payment grants
- Credit unions
- HUD counseling
- VA loans
- Special Programs
Nationwide, there are down payment grant resources tailored toward helping Black ownership. These include:
- Twin Cities Habitat for Humanity Advancing Black Homeownership Program
- State of New York Mortgage Agency – eDPAL
- The Dearfield Fund for Black Wealth Down Payment Assistance Program
- Chase Homebuyer Grant
- Covenant Homeownership Program in Washington State
Special Programs to Consider
The Heirs Property Assistance Program helps low-income people and households in the DC area protect their legal claim to residential property with unclear legal title, or that is in probate due to the owner’s death.
The program launched in October 2023. DC heirs have access to assistance and legal representation to navigate their claim after meeting certain criteria.
Frequently Asked Questions
Are Black People Less Likely to Get a Mortgage?
Yes, getting a mortgage is still one of the main sources of discrepancies in Black homeownership. Black applicants are nearly twice as likely to be denied a mortgage as their white counterparts.
Some of the reasons for these disparities include:
- Debt-to-income ratios
- Lower average credit scores
- Gaps in credit history associated with systemic wealth differences
There are also generational wealth gaps due to reduced access to family financial cushions and larger down payments.
However, A 2025 study by O’Neil and Roscigno for PLOS One show black applicants still face higher disparities regardless of credit scores and income levels.
At What Age Do Most Americans Pay Off Their House?
Nearly 63% of Americans over 65 have paid off their mortgages. Fewer than 28% of homeowners below retirement age have completely paid off their homes.
According to Yahoo Finance, the average age at which people are buying houses for the first time is 36, the highest it’s ever been. Therefore, one may expect these homeowners to pay off their mortgage at a much later age than average.
Black Americans Jump Over Obstacles to Own Homes
Black homeownership may have taken a hit since the early 20th century, but Americans remain resilient and work on this path to generational wealth. Whether sticking with multi-generational living, becoming a landlord, or tapping into local and regional programs, more people are finding ways to pursue their dream of owning a home.
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