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We believe everyone deserves a stable and affordable place to call home and we are increasing access to homeownership for those who have historically been locked out. One way we are turning the tide on long standing barriers to homeownership is through our Advancing Black Homeownership inititative, by increasing access to homeownership our communities thrive.
How The Advancing Black Homeownership Initiative Came to be
The origins of Habitat for Humanity are deeply rooted in racial equity from the beginnings as a racially integrated working farm in Georgia in 1942. Since our San Francisco affiliate was created in 1989, we too have had racial equity as a founding principle of our affiliate. As a leader in affordable homeownership, we are uniquely positioned and committed to advancing Black homeownership.
Many families, and Black Americans in particular, face obstacles to homeownership due to the lingering effects of racially discriminatory housing policies. During COVID and post COVID, it was apparent to Habitat for Humanity International and the nation that the Black community was especially impacted by inequities during the pandemic.
In response to this, the Advancing Black Homeownership initiative has been developed by Habitat for Humanity, with inputs from affiliates across the country. While the direct goal of this is to increase the number of Black homeowners, we believe this work and strategy will also benefit other marginalized populations.
31.3%
The racial homeownership gap between Black and white households in the U.S. is 31.3%.
1%
Black households own about 1% of wealth in the U.S., which has barely budged from the 0.5% of wealth they owned in 1863 — when the Emancipation Proclamation was signed.
45%
Just under 45% of Black households own their home, compared with 74% of white households.
Inequities in Homeownership
Credit Scores
Black homebuyers face systemic barriers to homeownership, as credit scores often overlook key financial activities like on-time rental payment history. Building credit is out of reach for many Black families who have historically been locked out of owning homes and generating wealth – a cycle that perpetuates the marginalization of Black families in homeownership.
Downpayments
Today, the typical white family has about $184,000 in family wealth, while the typical Black family has $23,000.4 This discrepancy illustrates the challenge for Black families to produce a downpayment on a home and the long lasting negative impacts of discriminatory housing practices such as redlining.
Home Appraisals
Home appraisals, crucial for selling a home and building wealth, are often biased. Even if it’s unintentional or unconscious, implicit bias can lead appraisers to set a Black homeowner’s property value lower than if the homeowner were white and a property in a Black neighborhood lower than if it were in a predominately white neighborhood.
High Interest Rates
High-income Black homeowners face higher interest rates than low-income white homeowners due to systemic barriers to credit access. Redlining, which began in the 1930s, excluded Black households from mortgage opportunities—98% of $120 billion in federally backed loans from 1934 to 1962 went to white homeowners.
Zoning Ordinances
The legacy of these discriminatory practices is evident in the segregation of entire cities and the disparities in education, health, and economic outcomes for Black Americans, who have not had the same access to homeownership and its benefits. Today, the Black homeownership rate in the U.S. is the lowest among all racial and ethnic groups.
Our Commitment to You
Recognition
We recognize that the homeownership gap is a complex issue that can perpetuate itself, we aim to address the root causes and implement solutions focused on the systems that perpetuate racial injustice in housing.
Advocate
We plan to advocate for more inclusive practices, equitable housing policies and changes that could benefit anyone with an undervalued financial history. Removing barriers to Black homeownership benefits all aspiring homeowners; this is not a zero-sum game.
Transparency
We are committed to openly sharing our learnings and insights, keeping you informed about how we apply them to enhance our work, the progress we make, and the results we achieve.
“There’s an ingrained societal suspicion that intentionally supporting one group hurts another. That equity is a zero-sum game. In fact, when the nation targets support where it is needed most — when we create the circumstances that allow those who have been left behind to participate and contribute fully — everyone wins. The corollary is also true: When we ignore the challenges faced by the most vulnerable among us, those challenges, magnified many times over, become a drag on economic growth, prosperity, and national well-being.”
Angela Glover Blackwell
Founder in residence at PolicyLink and author of “The Curb-Cut Effect.”
Read inspiring stories of Habitat families who have achieved homeownership.
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