PROPERTY IS POWER! Hidden Barriers: The invisible hand of discrimination in Black homeownership

Adobe Stock Photo In the pursuit of homeownership, Black Americans face systemic barriers that impede their progress at every stage of the process. From mortgage application rejections to appraisal discrimination, the road to owning a home remains disproportionately challenging for Black prospective buyers. Despite legislative efforts to address discrimination, the disparities persist, hindering Black Americans’ ability to build generational wealth. According to the National Association of Real Estate Brokers (NAREB), Black loan applicants in the United States are more than twice as likely to be denied a home mortgage compared to their White counterparts. While both Black and White applicants experienced a slowdown in loan denials since the 2008 financial crisis, the gap between denial rates has widened significantly. Currently, 15 percent of Black applicants are denied mortgages, compared to 6 percent of White applicants. The homeownership gap between Black and White Americans has also widened over the years. While nearly 45 percent of Black households own their homes, more than 74 percent of White households are homeowners. In 1970, the gap in homeownership between Black and White households was 24 percent, but today, it stands at 30 percent. This vast disparity in homeownership rates exacerbates the massive income gap...