Rising house prices exacerbate racial wealth gap in America

Homeownership the long a cornerstone of the “the American dream” – is increasingly out of reach for the average American. Over the past four decades, U.S. house prices have risen by 75% in real terms, pushing the costs of homeownership for the typical first-time homebuyer to a record high. At the same time, these rising prices have significantly boosted the wealth of existing homeowners.As a sociologist who studies inequality in America through the lens of housing, I’ve spent the past few years looking into how rising house prices have affected the wealth gap between white and Black households, which has widened significantly over the past four decades. White families had about US$90,000 more wealth – in 2021 dollars – than their Black counterparts in 1984, an alarmingly wide gap. But by 2021, the gap had widened to almost $160,000.My recent peer-reviewed research, published in the journal Social Problems, found that the rise in house prices between 1984 and 2021 accounted for most of this widening gap. Using data from the University of Michigan’s Panel Study of Income Dynamics, which tracks a nationally representative group of American families over time, I explored how homeowners’ wealth trajectories would have differed if they...