- The Black homeownership rate fell to 43.9% in the second quarter, while the Hispanic homeownership rate ticked up slightly.
- The drop in the Black homeownership rate may be tied to the rising Black unemployment rate, which sits at 7.2%—the highest level since 2021.
The Black homeownership rate fell to 43.9% in the second quarter—the lowest level since the fourth quarter of 2021. That’s down from 45.3% a year earlier, marking the largest year-over-year decline since the third quarter of 2021.
By comparison, the Hispanic homeownership rate inched up slightly (to 48.8% from 48.5% a year earlier), and there were small declines in both the non-Hispanic white homeownership rate (to 74% from 74.4%) and the Asian/Native Hawaiian/Pacific Islander homeownership rate (to 62.1% from 62.8%).
“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” said Redfin Chief Economist Daryl Fairweather. “The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers. DEI programs have also been dismantled in workplaces across the private and public sectors, which may have resulted in fewer Black employees being hired or promoted.”
The Black/African American unemployment rate was 7.2% as of July, up from 6.3% a year earlier and the highest level since October 2021. Unemployment rates for other groups were relatively steady, with the Hispanic/Latino unemployment rate dipping to 5% from 5.3%, the white unemployment rate dipping to 3.7% from 3.8%, and the Asian unemployment rate rising to 3.9% from 3.7%.
Black/African American women, in particular, have seen an especially large jump in joblessness, with their unemployment rate rising to 6.3% in July from 5.5% a year earlier. The unemployment rate for Black/African American men was higher but saw a less dramatic jump—to 7% from 6.6% a year earlier.
A 2024 analysis from the National Association of Realtors found that 33% of Black/African American homebuyers were single women, far outpacing single men, who represented 12% of Black/African American buyers.
Rising home prices, high mortgage rates and uncertainty surrounding the economy and job market have made it difficult for many Americans to break into homeownership in recent years, but one of those factors is now easing up. The average 30-year-fixed mortgage rate has fallen below 6.5% from a peak of over 7% at the start of the year, which appears to be bringing at least some homebuyers off of the sidelines.
“Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing,” said Fairweather. “For Black households who feel locked out of the American dream, the good news is that affordability is improving as mortgage rates come down, home prices are growing at less than half the pace they were a year ago, and buyers have been gaining negotiating power.”
If you are hoping to buy a home but are not sure you can afford one, you may qualify for a homebuyer assistance program. For example, a new program in Washington State offers homebuying assistance to those who faced housing discrimination in the early to mid-20th century and their descendants.
Rocket Mortgage, Redfin’s partner mortgage company*, offers a number of loan products to make homeownership more affordable and attainable, including low down payment options such as ONE+ as well as closing cost credits for renters buying their first home. In addition, with Rocket Preferred Pricingᐩ, Redfin clients get special savings on their mortgage rate when they finance their home purchase with Rocket Mortgage.
*Rocket Mortgage is an affiliate of Redfin. You aren’t required to use its lending services. Learn more at redfin.com/afba. All mortgage lending products and information are provided by Rocket Mortgage, LLC | NMLS #3030; www.NMLSConsumerAccess.org. Licensed in 50 states.
ᐩClients who finance with Rocket Mortgage and either (a) purchase a home using a Redfin agent or Redfin partner agent (or Rocket Homes Network Agent), or (b) buy a property where Redfin is the listing brokerage, will receive an effective rate reduction of 1% below the note rate for the first year from Rocket Mortgage. For example, a client locking in a 6.99% interest rate would pay 5.99% for the first year, reverting to 6.99% for the remaining term. Clients may choose to opt out of the rate reduction and receive a lender-paid credit of 0.75% of the loan amount, up to $6,000 from Rocket Mortgage. Only valid on conforming loan limits. This offer is only available to clients who complete their application process and receive their Loan Estimate after July 1, 2025. Offer valid on retail loans only and cannot be combined with any other discounts or promotional offers. Additional restrictions/conditions may apply. Rocket Mortgage reserves the right to cancel/modify this offer at any time. This is not a commitment to lend
