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Across the United States, there is a major disparity in homeownership rates among Black, Latinx, and white families. America’s history of slavery, segregation, and redlining and racially segregated housing policy has contributed heavily to these gaps.
Data from the Urban Institute shows the Black-white homeownership gap reached about 30.1 percentage points in 2017, wider than it was in some eras when race-based discrimination was still legal.
Because owning a home is one of the largest drivers of wealth in the U.S. - with average home values historically appreciating around 3.5-3.8% per year according to SFGate/HomeGuides - closing the Black homeownership gap is essential to closing the broader racial wealth gap.
Below are some of the organizations working to change that reality and make homeownership more accessible for Black families.
Black Homeownership Collaborative
The Black Homeownership Collaborative is committed to creating 3 million net new Black homeowners by 2030. Officially launched in 2021, it is a coalition of more than 100 organizations and individuals, including the NAACP, National Association of REALTORS®, and the Urban Institute.
Their 7-point “3by30” plan includes strategies such as:
- Homeownership counseling;
- Down payment assistance for first-time Black homebuyers;
- Policy reforms to remove barriers to Black homeownership.
If you are considering buying a home and want to learn more, visit 3by30.org.
African American Alliance for Homeownership (AAAH)
The African American Alliance for Homeownership (AAAH) focuses on increasing homeownership and economic stability for African Americans and other underserved communities.
AAAH is HUD-approved and has been operating since 1997. Its programs include:
- First-time homebuyer education and counseling;
- Foreclosure prevention counseling;
- Financial coaching geared toward long-term, sustainable homeownership.
You can explore their services and events at aaah.org.
Black Homeownership Project, New York City
Local organizations are critical to closing the racial homeownership gap because they understand the specific needs of their cities and neighborhoods. In New York City, the Black Homeownership Project (BHP) works to address the steep decline in Black homeownership since the 2008 financial crisis.
BHP notes that New York City lost more than 20,000 Black homeowners in Queens alone between 2005 and 2017. In response, the organization has launched pilot programs that:
- Connect Black New Yorkers with homeownership counseling;
- Provide legal assistance related to housing and property;
- Support residents navigating the path to stable ownership.
Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac, two key government-sponsored enterprises in the mortgage market, have introduced underwriting innovations to help more renters - including Black renters - transition into homeownership.
Historically, many first-time homebuyers have limited credit histories, making mortgage approval more difficult. Both Fannie Mae and Freddie Mac now consider on-time rent payment history as part of their loan purchase decisions when that data is available.
For renters in communities where rent reporting is in place, this is a landmark shift: consistent, on-time rent can help strengthen their mortgage applications instead of remaining invisible.
Let’s Connect
Progress on Black homeownership is being driven by national coalitions, local organizations, policy changes, and everyday advocates.
Esusu’s mission - to help bridge the racial wealth gap through data and rent reporting - is closely aligned with this work. As Black History Month and similar moments of reflection come around each year, Esusu will continue highlighting organizations and initiatives moving the needle on housing equity.
We would love to hear which organizations you follow in the housing and financial resilience space. Join the conversation and stay connected with Esusu on:
X (formerly Twitter): @getesusu