Black Women Outpace Black Men in Homebuying, Facing Challenges Along the Way
In the world of homebuying, Black women are emerging as the frontrunners, outpacing Black men and other racial groups. According to the 2023 Snapshot of Race and Home Buying in America report by the National Association of Realtors, single female homebuyers are most common among Black women, representing 27% of Black homebuyers. In comparison, single women represent 24% of Asian homebuyers, 17% of white buyers, and 7% of Hispanic buyers.
The rise of Black female homebuyers is evident in the data. Between October 2017 and September 2018, female buyers represented 32.4% of all Black homebuyers. This share increased to 35.4% from October 2020 to September 2021. The growth rate of Black female homebuyers averaged at 7.3% annually from October 2018 to January 2020. In contrast, Black male buyers only grew at an annual rate of 3.4% during the same period.
While the increasing number of Black women homeowners is a positive trend, it does not come without its challenges. Jacob Channel, a senior economist at LendingTree, emphasizes that despite their achievements, Black women still face unnecessary societal hurdles that hinder their homebuying journey. He states, “That doesn’t mean that it’s easy for them and that doesn’t mean that it’s not being made unnecessarily difficult by certain societal hurdles that stand in the way, that should not exist.”
Three major hurdles affect homeownership for Black women: education debt, mortgage access, and low-wage jobs.
Education debt plays a significant role in hindering Black women from saving for a down payment and qualifying for mortgages. While Black women are becoming more educated, this also means they are more likely to have student loans. According to Bankrate, Black women carry the most undergraduate student loan debt compared to other female undergraduate borrowers, averaging $41,466.05 a year after graduation. Lenders take student loan payments into account when determining affordability, making it harder for Black women to save for a down payment and qualify for mortgages.
Mortgage access is another challenge faced by Black women. Lending standards have become stricter compared to the early 2000s. A report by the National Women’s Law Center reveals that single Black women were less likely to be homeowners in 2021 compared to 2007. Moreover, during the Great Recession, Black women were 256% more likely to have a subprime mortgage compared to white male borrowers with similar economic circumstances. This disparity led to a higher representation of women of color in foreclosures when the housing market crashed.
The third hurdle is the disproportionate representation of Black women in low-wage jobs, such as child care and hospitality work. Sarah Hassmer, director of housing justice at the National Women’s Law Center, highlights the undervaluation of these critical jobs in our economy. Black women, along with Latinas, are overrepresented in these low-wage sectors. The median hourly wage of a child care worker in 2022 was $13.71 per hour, making it challenging for Black women to afford a down payment, which is one of the biggest obstacles to homeownership.
Despite these challenges, the rise of Black women in homebuying signifies their determination and resilience. It is crucial for policymakers and society as a whole to address these hurdles and create a more equitable environment for Black women to achieve their homeownership dreams. By tackling education debt, improving mortgage access, and addressing wage disparities, we can pave the way for a future where Black women can thrive in the housing market.
In conclusion, while Black women are outpacing Black men and other racial groups in homebuying, they still face significant challenges. Education debt, mortgage access, and low-wage jobs hinder their path to homeownership. However, with the right support and systemic changes, Black women can overcome these obstacles and continue to make strides in the housing market. It is essential to recognize their achievements while working towards a more inclusive and equitable future for all aspiring homeowners.