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Skynesher | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Homeownership<\/a> is out of reach for many Americans \u2014 especially for Black Americans.<\/p>\n In the country’s largest metropolitan areas, Black people own a disproportionately small share of homes<\/a> relative to population size, according to a new report<\/a> from LendingTree.<\/p>\n In 2022, Black people made up an average of 14.99% of the population across the 50 largest metropolitan areas of the U.S., but owned an average of 10.15% of owner-occupied homes in such places, the report found. Those figures are roughly flat from 2021.<\/p>\n “Relatively speaking, Black people don’t own that many homes,” said Jacob Channel, a senior economist at LendingTree who authored the study.<\/p>\n More from Personal Finance:<\/strong> In Memphis, Tennessee, Black people make up nearly half the population, the largest share among all metros in the study. But they only own about 36% of homes in the area, LendingTree found.<\/p>\n LendingTree analyzed the U.S. Census Bureau’s 2022 American Community Survey with one-year estimates. The study ranks the nation’s 50 largest metropolitan statistical areas by the difference between the percentage of owner-occupied homes in a metro owned by those who identify as Black and the share of an area’s population that identifies as Black.<\/p>\n<\/div>\n “The data indicates that Black folks are probably going to face disproportionately steep hurdles that stand in the way of them becoming homeowners,” said Channel.<\/p>\n One of the hurdles is the income disparity. The median income for Black U.S. households was $51,374, about $29,000 less than the $79,933 median income for white U.S. households, according to the latest U.S. Census Bureau data.<\/p>\n While 51% of Black U.S. households in 2022 made at least $50,000 a year, the shares dwindle as the salary increases, Pew Research Center found<\/a>. About 34% of Black households made $75,000 or more while 22% made $100,000 or more.<\/p>\n “They tend to have less household wealth, less access to intergenerational wealth,” Channel said.<\/p>\n A lower income can make it harder to save for a down payment and to qualify for a mortgage, especially when both home prices and interest rates remain elevated despite subtle declines.<\/p>\n<\/div>\n Another element that comes into play is the tax system.<\/p>\n The tax code has a mortgage interest deduction<\/a> that “overwhelmingly benefits people who can already afford a home,” said Sarah Hassmer, the director of housing justice at the National Women’s Law Center, a nonprofit organization based in Washington, D.C.<\/p>\n
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