Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans

Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans

Today we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real estate specifically, equitable access to housing has come a long way, but the path to homeownership is still steeper for households of color.

The Gap in Homeownership Rate in America

It’s a more challenging journey to achieve homeownership for some buyers, as shown by the measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Census data shows the lowest homeownership rate persists in the Black community (see graph below):

The Gap in Homeownership Rate in America

This graph clearly indicates there’s a gap that still exists in the percentage of people in each community who are able to achieve homeownership. 

How Homeownership Impacts Household Wealth 

One of the challenges that could make buying a home harder for these groups is how difficult it can be to accumulate wealth. Even today, there are obstacles certain racial and ethnic groups, especially the Black community, still face. A recent article from NextAdvisor explains:

“The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.”

This can delay or prevent many from achieving homeownership, challenging their ability to grow their net worth and build wealth that can pass down to future generations – a point that’s clear in a 2022 report from the National Association of Realtors (NAR):

Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical white family was nearly 8 times greater than that of a Black family ($24,100) in 2019.”

It’s important to talk about the experience Black homebuyers may have and the challenges they may face as they pursue their dream of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process.

These professionals aren’t only experienced advisors who understand the market and give the best advice. They’re also compassionate allies who will advocate for your best interests every step of the way. They can point you to important resources and tools that can help you throughout your journey to homeownership.

Bottom Line

Opportunities in real estate improve every day, but there are still equity challenges that many face. Reach out to a trusted local real estate professional so you have an advocate on your side to help you achieve your dream of homeownership.

About the Author
Stephanie Miller, Living Local Nashville Realtor

Stephanie Miller is a Nashville native with an extensive background in the local real estate industry and is excited to use that experience to help you achieve your homeownership and investment goals! 

With family deeply rooted in the Nashville area since the early 1800’s and entrepreneurship ingrained in her by generations of small business owners, home builders, restauranteurs, and pioneers in their industries, it should come as no surprise that she truly loves her hometown and the opportunity to serve the residents of Middle Tennessee while continuing a tradition of entrepreneurship through a family business. 

She has over two decades of experience working for some of Nashville's top real estate teams, effectively marketing thousands of homes in every price point and creating systems to streamline the real estate process. She has gained invaluable knowledge and insight along the way and her favorite opportunity thus far is working alongside her dad, Ron Rice, combining their experience to serve all of their family, friends, and clients together. 

Stephanie lives in Wilson County with her husband Jason, two sons who are both very active in Scouts, and two rescue dogs. 

Service
2012 - 2013    McFarlin Pointe HOA Board Officer
2013 - 2017    Rutherford County Schools Outreach Volunteer
2015 - 2016    Nolensville Cub Scout Pack 297 Committee Member
2017 - 2021    Lebanon Cub Scout Pack 643 Committee Member
2022 - present    Scouts BSA Troop 2535 Committee Chair

Memberships & Certifications
National Association of REALTORS®
Tennessee REALTORS®
Greater Nashville REALTORS®
At Home with Diversity®