The Current State of Black Homeownership in 2025

For generations, Black Americans have pursued homeownership not just as a personal achievement, but as an act of power a strategy to reclaim agency,build legacy, and plant roots in a country that has too often tried to up root us. And yet in 2025, the racial homeownership gap in America persists as one of the most glaring symbols of systemic inequality.

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This article doesn’t just explore the numbers it explores the why. And more importantly, the what now. What can be done? Who must take responsibility? And how can Black Americans armed with knowledge, strategy, and intention turn the tide?

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Let’s examine the current state of Black homeownership through a lens that blends data with dignity, and facts with the fierce belief that Property is Power.

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Demographics, Desire, and the Disparity in Ownership

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As of 2023, nearly 48.3 million people in America identify as Black a 33%increase since the year 2000. Our community is growing, thriving, and leading in education, entrepreneurship, and civic engagement. And yet, despite havingover 15.5 million households, our ownership rates tell a sad story. While nearly 65% of American households own homes, only 43.3% of Black households do a gap that is wider today than it was in 1968, the year the Fair Housing Act was signed into law.

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That should alarm all of us. But it should also inspire us to dig deeper.

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Beyond Income: What Really Drives the Gap

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Income is often used as a convenient explanation for the disparity in homeownership. But the truth is more layered and more revealing. Yes, a significant portion of Black households earn under $75,000 a year. But that’s not the whole picture. Over 3.5 million Black households earn more than $100,000 annually, and that number is growing. Even with rising incomes, Black applicants are more likely to be denied a mortgage than white applicants with similar or even lower earnings. In other words, this isn’t just about income, it’s about access.

Mortgage Applications, Denials, and the Fallout

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Between 2020 and 2023, Black mortgage applications rose from 6.3% to 9.6% of total applications. Black households want to own homes. But intentions are too often met with rejection.

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In 2023:

·       18.6% of Black applicants were denied a mortgage, compared to just 9.6% of white applicants.

·       Black households experienced the highest“application fallout” rates meaning a disproportionate number of mortgage processes never made it to closing.

Even high-income Black borrowers face denial rates on par with low-income white borrowers. The message? Wealth does not erase racial bias.

Credit Scores, DTI, and the Structural Trap

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Credit score disparities between Black and white communities begin early often by age 25. This isn’t accidental. It’s the residue of a system that denied Black family’s fair access to credit, home equity, and financial stability for generations.

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Add to that a higher average debt-to-income (DTI) ratio driven in large part by student loan debt and you have a situation where even financially responsible Black applicants are seen as “too risky” by outdated underwriting models.This is not a creditworthiness problem. This is a structural inequality problem.

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Regional Realities: The Local Shapes the National

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Every major metropolitan area in the U.S. reflects a significant gap in Black homeownership. In some smaller cities, the gap becomes even more alarming because the lending simply isn’t happening at all. Take Boise, Idaho, where 87% of lenders did not originate a single loan to a Black borrower in 2023. That’s a system failing an entire demographic. But while the challenges are local, so are the solutions.

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What Lenders Must Do: Responsibility Meets Opportunity

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The narrative that lending to Black borrowers is charity must be shattered. This is not about pity. It’s about potential. Black households are growing, Black wealth is rising, and Black borrowers are ready. Lenders who fail to serve this market will simply fall behind.

Here’s how forward-thinking institutions can act:

·       Offer down payment assistance programs that bridge wealth gaps

·       Expand financial literacy initiatives and credit education

·       Create special-purpose credit programs tailored for Black homebuyers

·       Partner with trusted community organizations and churches

·       Hire loan officers with a track record of serving Black borrowers

·       Use market-specific data to target underserved neighborhoods

·       Black homeownership must become a national priority

Affordability, Appraisal Gaps, and the Weight of History

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Let’s not ignore the elephant in the room: Affordability.

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Mortgage rates rose above 7% in 2024. The median home price surpassed $389,000. That means even a modest 3.5% down payment now requires over $25,000 in cash a steep ask for families historically denied generational wealth. Add to that appraisal bias, where homes in Black neighborhoods are consistently undervalued by an average of 30%, and it’s clear: The system is not broken. It was built this way. And yet we’re still Standing still Striving still Building.

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The Final Word: Property is Power!

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Every mortgage closed, every loan approved, every appraisal corrected is notjust a financial transaction it’s a reclamation. When we own property, we own power. We claim space. We build wealth. We shape futures. So, as we move through 2025 and beyond, let’s not just talk about the gap. Let’s close it. Because when Black families thrive in ownership, America wins. And when we say Property is Power, we mean it.

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Dr. Anthony O. Kellum – CEO of Kellum Mortgage, LLC

Homeownership Advocate, Speaker, Author

NMLS# 1267030 NMLS #1567030

O:313-263-6388 W: www.KelluMortgage.com.

Property is Power! is a movement to promote home and community ownership. Studies indicate

homeownership leads to higher graduation rates, family wealth, and community involvement.

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