SEATTLE, Feb. 18, 2020 /PRNewswire/ -- Recent trends
in the black homeownership rate show an increasing number are
becoming homeowners. The homeownership rate for black households
jumped 3.4 percentage points over the second half of 2019, bringing
it from a three-decade low to back near historic
averagesi. A deeper analysis by Zillow® revealed
some metro areas across the U.S. where the black homeownership rate
is higher than other large metros with comparably sized black
populations.
The black homeownership rate has experienced its share of ups
and downs in the past half-century -- gains during the last half of
the 20th century, then an outsized drop during the mid-2000s
housing bust before these recent signs of a bounceback. The
rate of homeownership for black households rose from 41.6% in 1970
to a peak of 46.5% in 2007. But homeowners of color were hit the
hardest during the Great Recession, and by 2016 the black
homeownership rate had plummeted all the way below 1970 levels. At
the end of 2019, 44% of black households owned their home, an
increase from lows hit during 2016 but still below the 2007
peak.
Across the U.S., the black homeownership rate lags behind that
of non-black households in each of the 45 large metros included in
this analysis, but it now sits above its mid-decade
averageii in more than half. This rate has grown the
most since mid-decade in Sacramento (+7.8 percentage points),
Phoenix (+5.4), Orlando (+5.3), San
Francisco (+4.4) and Portland (+3.9).
And in some cases, the rate of growth in the black homeownership
rate has exceeded that of all other households since mid-decade,
meaning the deficit is shrinking. Black households have closed the
gap the most in Sacramento (6.5
percentage points closer), Orlando
(4.1) and Cincinnati (3.2).
In general, areas with a higher share of black residents have a
higher black homeownership rate. The large metros with the highest
black homeownership rate are Birmingham (52.2%), Washington, D.C. (51.4%), Richmond (49.9%) and Atlanta (48.2%). These metros rank seventh,
eighth, fifth and third, respectively, with the highest share of
black residents.
There are some areas where the black homeownership rate is
higher than might be expected based on the area's black population.
San Antonio has the 37th-highest
share of black residents among those included in this analysis, but
the black homeownership rate there (42.9%) ranks 14th. The
situation is similar in Riverside
(15th-highest black homeownership rate; 35th-highest share of black
residents), Orlando (6th-highest
black homeownership rate; 24th-highest share of black residents)
and Sacramento (23rd-highest black
homeownership rate; 39th-highest share of black
residents).
"Homeownership has been a key path to wealth creation and
stability for generations of Americans," said Jeff Tucker, a Zillow economist. "It appears
that now, more than 10 years after a housing bust that hit black
homeowners the hardest, more black families are beginning to move
into homeownership. The remaining gap from the 2007 peak shows a
long road ahead in the recovery, but this is a step in the right
direction."
According to the Zillow Group Consumer Housing Trends Report,
black home buyers are more likely to be at least somewhat concerned
about qualifying for a mortgage (59%) than white buyers (46%).
And buyers of color are more likely to be denied financing at least
once before being approved for a mortgage (76%) than white buyers
(15%).
Metro
|
Mid-Decade
Average
Homeownership Rate -
Black Households (average
of 2014, 2015 and 2016)
|
2018
Homeownership
Rate - Black
Households
|
Change in
Homeownership
Rate
|
United
States
|
41.1%
|
41.5%
|
0.4%
|
New York,
NY
|
31.2%
|
32.9%
|
1.7%
|
Los Angeles,
CA
|
33.6%
|
31.7%
|
-1.9%
|
Chicago,
IL
|
39.1%
|
40.3%
|
1.2%
|
Dallas, TX
|
36.9%
|
35.1%
|
-1.8%
|
Houston,
TX
|
41.4%
|
40.9%
|
-0.5%
|
Philadelphia,
PA
|
48.1%
|
48.1%
|
0.0%
|
Washington,
DC
|
49.5%
|
51.4%
|
1.9%
|
Miami, FL
|
43.9%
|
45.6%
|
1.7%
|
Atlanta,
GA
|
46.1%
|
48.2%
|
2.1%
|
Phoenix,
AZ
|
29.4%
|
34.8%
|
5.4%
|
Detroit,
MI
|
41.5%
|
42.0%
|
0.5%
|
San Francisco,
CA
|
31.8%
|
36.2%
|
4.4%
|
Seattle,
WA
|
31.6%
|
32.6%
|
1.0%
|
Minneapolis,
MN
|
24.6%
|
22.3%
|
-2.3%
|
Riverside,
CA
|
39.5%
|
42.4%
|
2.9%
|
Tampa, FL
|
37.8%
|
39.1%
|
1.3%
|
Saint Louis,
MO
|
40.3%
|
39.5%
|
-0.8%
|
Denver, CO
|
37.6%
|
34.8%
|
-2.8%
|
San Diego,
CA
|
29.8%
|
26.8%
|
-3.0%
|
Baltimore,
MD
|
44.4%
|
46.2%
|
1.8%
|
Pittsburgh,
PA
|
32.8%
|
32.0%
|
-0.8%
|
Charlotte,
NC
|
43.3%
|
44.0%
|
0.7%
|
Portland,
OR
|
30.5%
|
34.4%
|
3.9%
|
Orlando,
FL
|
42.2%
|
47.5%
|
5.3%
|
Cleveland,
OH
|
35.5%
|
34.3%
|
-1.2%
|
Cincinnati,
OH
|
32.1%
|
35.4%
|
3.3%
|
Sacramento,
CA
|
31.1%
|
38.9%
|
7.8%
|
Kansas City,
MO
|
38.1%
|
37.4%
|
-0.7%
|
San Antonio,
TX
|
42.9%
|
42.9%
|
0.0%
|
Las Vegas,
NV
|
28.9%
|
28.8%
|
-0.1%
|
Columbus,
OH
|
33.6%
|
32.3%
|
-1.3%
|
Austin, TX
|
43.0%
|
38.2%
|
-4.8%
|
Indianapolis,
IN
|
36.3%
|
35.0%
|
-1.3%
|
Nashville,
TN
|
42.2%
|
41.7%
|
-0.5%
|
San Jose,
CA
|
33.0%
|
24.0%
|
-9.0%
|
Virginia Beach,
VA
|
41.3%
|
42.2%
|
0.9%
|
Milwaukee,
WI
|
27.6%
|
27.1%
|
-0.5%
|
Jacksonville,
FL
|
44.5%
|
43.2%
|
-1.3%
|
Louisville,
KY
|
35.5%
|
37.7%
|
2.2%
|
Raleigh,
NC
|
43.8%
|
43.8%
|
0.0%
|
Memphis,
TN
|
44.4%
|
44.5%
|
0.1%
|
Richmond,
VA
|
47.9%
|
49.9%
|
2.0%
|
New Orleans,
LA
|
45.1%
|
47.2%
|
2.1%
|
Buffalo,
NY
|
32.3%
|
33.1%
|
0.8%
|
Birmingham,
AL
|
49.9%
|
52.2%
|
2.3%
|
About Zillow
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_____________________________
i According to the most recent quarterly data from the
U.S. Census Bureau's Housing Vacancy and Homeownership Survey and
annual data from the American Community Survey.
ii Comparing annual 2018 homeownership rates from the
American Community Survey to the average of the 2014, 2015 and 2016
annual homeownership rates.
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SOURCE Zillow