Industry Partners

The United States’ Staggering Racial Wealth Gap

October 1, 2021

The Racial Wealth Gap in the United States is worse today than it was before the passing of the Fair Housing Act in 1968. Black households in the U.S. are just as likely to own their home as they were in 1960.

In cities across the US, 17% of the black-white homeownership gap is unexplained by factors such as income, credit score, marital status, or education after controlling for the level of racial segregation, housing supply, and housing affordability at the MSA (Metro-Statistical-Area) level.
Furthermore – no major city in the United States has closed the black-white homeownership gaps, not even majority black cities.

Keys Unlock Dreams Initiative advances policy at the local level to ensure that state and local laws meet the needs of the housing market and strengthens the capacity of homeownership. It promotes equitable Housing Finance Systems to increase down payment assistance programs, incorporate alternative data into credit history, and to expand financial education. Further, KUDI promotes healthy, sustainable mortgage servicing relationships and sincere loss mitigation options.

Alanna McCargo, Senior Advisor for Housing Finance, U.S. Department of Housing and Urban Development has provided NFHA and Keys Unlock Dreams Initiative with foundational research, policy suggestions, and frameworks to address the staggering Racial Wealth Gap in the United States.

Source: National Fair Housing Alliance’s 2020 National Conference, with permission from Alanna McCargo.

View the Full Presentation

Keep Reading

Freddie Mac DPA One

Freddie Mac's DPA One is a free online resource to help you quickly find, understand and match down payment assistance (DPA) programs for borrowers.

Black Homeownership: <em>Using Data to Navigate the Road to Equity</em>

Black Homeownership: Using Data to Navigate the Road to Equity

This brief offers a dashboard to guide stakeholders working to close the racial homeownership gap by increasing the number of Black homeowners.

KUDI Impact Statement

This 2022 Keys Unlock Dreams Initiative Impact Statement details the successes of the program.

OUR AMERICA: LOWBALLED

Black and Latino families have had their homes appraised for up to $500,000 less than expected, and race has shown to play a significant factor. ABC documentary "Our America: Lowballed" raises awareness on this systemic issue.

Opinion: The Black-White homeownership gap is wider than it was in the ’60s. Here’s how to close it (CNN Business)

This opinion piece offers solutions to closing the long-standing Black-white homeownership gap.

Special Purpose Credit Programs Virtual Forum Overview

On September 1, 2021, the National Fair Housing Alliance (NFHA), in partnership with Urban Institute and the Mortgage Bankers Association (MBA), hosted a virtual forum on Special Purpose Credit Programs (SPCPs). This event was intended to provide the audience with an overview of SPCPs and a clear understanding of the barriers to credit access and who is most affected by those barriers.

Groundbreaking Report Identifies Bias and Systemic Barriers in Real Estate Appraisals

Racial discrimination in home appraisals continues to affect Black and Latino homeowners throughout our country, and a new federally-commissioned report from the National Fair Housing Alliance (NFHA) identifies recommendations to address this crisis.

Racial Homeownership Rates Vary across the Most Commonly Cited Datasets. When and Why Should You Use Different Ones?

Racial disparities in the housing market have been stark for nearly a century. Because of the pervasive influence of structural racism, people of color have experienced the greatest barriers to accessing and maintaining homeownership. Read about how data can be used to help close the gap.