T
he road to homeownership is a challenging one, but for people of color, the obstacles are steeper. According to a report on the State of Housing in Black America, the racial gap in homeownership has widened since the Fair Housing Act went into effect. In 2023, only 45.7% of Black households owned their homes, compared to 74.3% of white households.
One reason for this disparity is that Black mortgage applicants are more likely to be denied a loan or receive higher interest rates than whites. However, experts say it doesn't have to be this way. With the right coaching and support, many renters who think they can't afford homeownership can actually achieve their goal.
Bob Credle, director of community programs at Urban Edge, a nonprofit organization that helps prospective homebuyers in Boston's Roxbury neighborhood, says his biggest hurdle is getting people access to information about the home-buying process. He and his colleagues coach clients on how to save money, improve their credit scores, and get low-rate mortgages and down payment assistance.
OneUnited, one of the largest Black-owned banks in the country, recently launched a down payment-assistance program that grants up to $50,000 for qualified first-time homebuyers. However, affordability remains a major obstacle, especially in Boston, where costs and interest rates are high and properties often need significant repairs.
David Gasser, programs director at the Citizens' Housing and Planning Association, says building more housing is key to narrowing the racial homeownership gap. He also notes that homes in majority-Black neighborhoods are often appraised for less than similar homes in majority-white neighborhoods, perpetuating a cycle of low property values.
Melvin A. Vieira Jr., a Black real estate agent, has successfully challenged low appraisals by sending recent comparable sales to the appraiser and asking them to reconsider. He believes that educating people about personal finance should be part of every public high school curriculum, saying "If you give a person knowledge, it can't be taken away."
