Today, the homeownership gap between Black and white people in America is actually larger than it was in the 1960s, before the Fair Housing Act — which legally ended housing discrimination — was passed. This lingering homeownership disparity is the result of decades of discriminatory housing policies and practices.
Redlining and racial steering, along with the development of whites-only suburbs, laid the foundation for the creation of segregated communities in the United States. These practices also made homeownership out of reach for many people of color throughout American history – and now.
More recently, the subprime mortgage crisis, which disproportionately targeted and impacted people of color, further compounded this injustice. For example, the crisis caused hundreds of thousands of Black people to lose their homes, and had a crippling impact on Black wealth that could last for generations.
The wide disparity in homeownership is clearly detrimental for people of color. It also has negative consequences for the entire country, because it precludes everyone from experiencing the many benefits of diverse, inclusive communities.
Continue reading to find out more about the detrimental causes and implications of the homeownership gap – and how to remedy this disparity and improve quality of life for all.