In 2021, the Black homeownership rate in LA was 33.5%, according to the U.S. Census, the 124th lowest among metropolitan areas in America. At the same time, 58% of white households in the LA metro area owned homes. Besides a legacy of discriminatory housing practices and policies that historically prevented Black families from buying homes and building generational wealth, the National Association of Real Estate Brokers said, the ability to come up with the 20% down payment required to buy a home with a conventional mortgage is also an impediment.
In short, Black people often make enough money to pay a house note, but they lack the ability to build enough savings to make a down payment.
The high housing costs aren’t unique to big cities. In the 2023 Snapshot of Race and Home Buying in America, the National Association of Realtors Research Group said “rising mortgage rates and home prices significantly hurt affordability, forcing many buyers out of the market.” The report stated mortgage rates have doubled since the previous year and housing prices have reached an all-time high.When it comes to Black homeownership, these people are keeping it in the family