In a topsy-turvy economy, everything feels heavier. With rising rent prices across the country, many are feeling squeezed out of the “American Dream” of buying a home and building generational wealth that gets passed down.
Black Americans are feeling the pain more than others.
Even with serious gains made over the years, the disparity in home ownership for Black men and women compared to their white counterparts is staggering. According to a 2025 report from the National Association of Realtors (NAR), Black Americans experienced the highest year-over-year jump among racial groups in 2023. Still, they significantly trailed homeownership rates for Whites, Asians and Hispanics. At 44 percent, it is the lowest in the group, behind Whites (72%), Asians (63%) and Hispanics (51%).
The numbers were even bleaker, according to Redfin. The real estate brokerage saw Black homeownership rates drop to their lowest since 2021, with much of the blame attributed to unemployment and the mass layoffs of Black government employees under the Trump Administration.
“The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers,” Daryl Fairweather, Redfin Chief Economist, said, adding that Black families weren’t “building stability and wealth through housing.”
Other factors include longstanding discriminatory policies and practices that limit potential access to affordable housing, according to the Center for American Progress.
Even more troubling? The rising prices of homes. According to NAR, the median price for a home in the United States in June was $440,660, a 2 percent increase from $432,700 in 2025. And home prices continue to rise, as they have for 36 consecutive months. And all of this against the backdrop of a bipartisan housing bill that recently became law without Trump’s signature.
So why are young Black people learning more about homeownership and feeling less desire to rent? In some ways, it’s out of necessity.
Overcoming Fears
One of the biggest factors that deters potential Black homeowners is being completely lost within the process. For first-time applicants going through various loan programs, the concepts and figures necessary to be approved for a home can create problems – and plenty of headaches.
“Mortgage companies know they need to hold their hands with first-time home buyers because they ask a lot of questions,” Kirk Shelton, a broker associate with the Shelton Real Estate Group and Real Broker LLC, told theGrio. “Most of their searches start online, and they’re using AI, they’re using Zillow, their parents, and then some. They get a specialized service compared to someone who’s more established.”
Shelton turned to real estate after being burned out in teaching, primarily working with families for rentals and first-time home purchases. He’s seen it all, from applicants making wild purchases ahead of closing that mess up the entire process, to applicants sadly losing their jobs days before a purchase. In his eyes, cautious optimism is key for Black homebuyers, along with plenty of patience during the documentation process.
“It can be overwhelming with how much is needed,” he said. “Some go into it not knowing what to expect, especially with something that increases in value. You need to know your debt-to-income ratio and what your mortgage score is, which is completely different from what your credit score is.”
He added, “Debt-to-income ratio may be one of the biggest hurdles in purchasing a home, first-time buyer or not. The pitfall of renting has pretty much captured a lot of minority families in the sense that they’re trying to put a temporary fix on a permanent issue. And that’s before you get into questions about down payments, loan verifications and more.”
While national numbers have shown a sharp downturn for Black homebuyers, many are breaking through the process by any means and establishing financial safeguards just in case.
Patience Is Key
Between various loan qualifications, such as a VA Loan or an FHA Loan, many potential homeowners feel they have everything locked in until the closing process truly begins.
“We wanted a backyard and space,” Keenan Seahorn, an educator in Houston, told TheGrio. He and his wife, Brittany, who spearheads a burgeoning book community in the city, had a goal in mind not long after they got engaged. And in their case, the couple wanted to build their house from the ground up. Even after signing a build date in 2021 for the house to be completed in 2022, issues persisted.
“Here’s how the timeline went,” Seahorn began. “In October 2021, we signed to build with a date set for May 2022. My wife and I got married in February 2022. The house didn’t close until October 2023. And I even had to take over as the lead communicator because my wife was so frustrated with the woman we were working with.”
According to the Seahorns, the house-delay situation involved multiple issues, including a lack of communication. While they’re happy with their home customized to their liking, as newlyweds firmly establishing their own future, they’re still noticing small aspects where corners were definitely cut.
Still, they’re among many young Black families who aren’t afraid to put out feelers and pursue the homeownership dream. Some new homeowners, whether in the South or elsewhere, have become locked into the process, want something for themselves, and are ready to post those “next chapter”-style photos on social media to document the journey.
“Established Black people are keeping their homes rather than selling,” Shelton said. “But for people in their late 30s or maybe slightly younger who feel ready to purchase, I’d recommend new homes over resale homes. With these master communities sprouting up everywhere, they want to get people into those homes. And you can always refinance. But it’s all about timing. And for plenty of people, now’s the time because it’s only going to get higher, unless a major market crash happens.”
