Black Homeownership Rate Drops to Lowest Level Since 2021

The Black homeownership rate fell to 43.9% in the second quarter, while the Hispanic homeownership rate ticked up slightly

SEATTLE--(BUSINESS WIRE)--The Black homeownership rate fell to 43.9% in the second quarter—the lowest level since the fourth quarter of 2021, according to a new report from Redfin, the real estate brokerage powered by Rocket. That’s down from 45.3% a year earlier, marking the largest year-over-year decline since the third quarter of 2021.

By comparison, the Hispanic homeownership rate inched up slightly (to 48.8% from 48.5% a year earlier), and there were small declines in both the non-Hispanic white homeownership rate (to 74% from 74.4%) and the Asian/Native Hawaiian/Pacific Islander homeownership rate (to 62.1% from 62.8%).

“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” said Redfin Chief Economist Daryl Fairweather. “The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers. DEI programs have also been dismantled in workplaces across the private and public sectors, which may have resulted in fewer Black employees being hired or promoted.”

The Black/African American unemployment rate was 7.2% as of July, up from 6.3% a year earlier and the highest level since October 2021. Unemployment rates for other groups were relatively steady, with the Hispanic/Latino unemployment rate dipping to 5% from 5.3%, the white unemployment rate dipping to 3.7% from 3.8%, and the Asian unemployment rate rising to 3.9% from 3.7%.

Black/African American women, in particular, have seen an especially large jump in joblessness, with their unemployment rate rising to 6.3% in July from 5.5% a year earlier. The unemployment rate for Black/African American men was higher but saw a less dramatic jump—to 7% from 6.6% a year earlier.

A 2024 analysis from the National Association of Realtors found that 33% of Black/African American homebuyers were single women, far outpacing single men, who represented 12% of Black/African American buyers.

Rising home prices, high mortgage rates and uncertainty surrounding the economy and job market have made it difficult for many Americans to break into homeownership in recent years, but one of those factors is now easing up. The average 30-year-fixed mortgage rate has fallen below 6.5% from a peak of over 7% at the start of the year, which appears to be bringing at least some homebuyers off of the sidelines.

“Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing,” said Fairweather. “For Black households who feel locked out of the American dream, the good news is that affordability is improving as mortgage rates come down, home prices are growing at less than half the pace they were a year ago, and buyers have been gaining negotiating power.”

To view the full report, including charts, please visit:
https://www.redfin.com/news/black-homeownership-rate-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.