Black Women Outpace Black Men In Home-Buying, Education Disparity Is A Contributing Factor

Black women and millennials are purchasing homes at a higher rate than Black males, according to new research.

Since October 2018, the number of Black women and millennial homebuyers has grown faster than Black male buyers each month, suggesting female homebuyers could be a significant driver of Black homeownership rate growth.

According to a 2023 report released by the National Association of Realtors (NAR), female Black homeownership had an average year-over-year growth rate of 10.4% between October 2018 and September 2021. Between 1990 and 2019, Black women were purchasing homes at a rate of 5.6% while Black men’s homeownership declined by 8%.

Although the COVID-19 pandemic saw a spike in house prices, Black women recovered faster and continued buying properties. Between June 2020 and September 2021, Black female buyers surged 18.1% compared to the 11.5% increase in Black male buyers.

Joshua Brown, founder of the Brooklyn-based real estate company Pushing Forward Realty, told The Amsterdam News that Black women buying homes tend to have more education and more disposable income. Among Black students in higher education, women are more likely than men to earn degrees, per the American Association of University Women.

However, the racial homeownership gap has only slightly narrowed for those with higher educational attainment. Black people with a college degree have lower homeownership rates than white people without a high school diploma. Those who borrowed student loans have “higher debt burdens, express more concern about the affordability of loan payments, and are more likely to default, which has long-term implications on credit and mortgage eligibility. This is layered onto a housing landscape where there is already a large racial homeownership gap,” as stated by the Urban Institute.

Overall, the Black homeownership rate has not kept pace with increases of other racial groups. These trends shine a light on significant affordability and buying challenges people of color endure throughout and even after their home purchase, according to the report.

“Black homeowners spend more of their income to own their homes than all racial groups, with 30% being cost-burdened – defined as spending more than 30% of their income on housing,” per NAR. For down payments, 16% of Black Americans withdrew 401(k) or pension funds more than any other group, which increased 2% from last year.

Additionally, Black Americans have the highest denial rates for purchase and refinance loans. Black Americans were denied applications for nearly 17% of loans for a home purchase, 17% of loans for refinancing and 51% of loans for home improvement. What’s more? The transaction phase is no easy feat. Thirty-nine percent of Black American home buyers reported discrimination through home appraisal.