Redfin: Black homeownership rate slips to 43.9%

Black homeowners, who already face long-term disadvantages in the housing market, are losing more ground. 

The Black homeownership rate fell this summer to its lowest rate since late 2021, according to Redfin. The brokerage, now a Rocket Cos. affiliate, cited annual unemployment figures, which are higher for both Black men and women than other ethnic groups. 

“The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers,” said Daryl Fairweather, Redfin’s chief economist, in a press release Monday. 

The second quarter assessment comes on the heels of a weak federal labor report, although that meager jobs report includes more hiring by lenders in anticipation of Federal Reserve rate cuts. Fairweather also cited dwindling diversity, equity and inclusion workplace programs, including at the nation’s federal housing agencies.

The Black homeownership rate of 43.9% is down from 45.3% the same time last year, and well behind the non-Hispanic white homeownership rate of 74%, which also fell slightly according to Redfin. 

How demographics compare in the housing market

Black homeowners had the lowest homeownership rate among demographic groups within the data sourced from the U.S. Census Bureau. Hispanics have an only slightly higher homeownership rate at 48.8%, a figure that increased from last year. 

Among Asians, Native Hawaiians and Pacific Islanders, 62.1% were homeowners in the second quarter, a figure which fell almost a full percentage point annually. 

Whereas the Bureau of Labor Statistics reported Friday a 4.3% national unemployment rate, the figures varied widely for ethnic groups. According to Redfin’s study: 

• The Black unemployment rate climbed to 7.2% from 6.3% last year, the highest rate since 2021;
• The Hispanic unemployment rate fell to 5% from 5.3% last year;
• The Asian unemployment rate ticked up to 3.9% from 3.7% last year;
• The non-Hispanic white unemployment rate declined to 3.7% from 3.8% last year.

Black men and women individually are facing heightened distress. The unemployment rate for Black men rose to 7% from 6.6% in 2024 according to Redfin’s study, and the rate for women jumped to 6.3% from 5.5% last summer. 
“Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing,” Fairweather said. 

Generally, Black homebuyers are almost twice as likely to be denied a mortgage than other ethnic groups, according to a recent Lendingtree study. They also face higher denial rates for home equity line of credit loans.

Lendingtree attributed lower Black homeownership on their overall lower credit scores and lack of credit history compared to other groups. The Federal Housing Finance Agency this year allowed the government-sponsored enterprises to use VantageScore 4.0, a move meant to lower lenders’ credit costs that could also improve the creditworthiness of more underserved borrowers.