Being Black In Real Estate

When I decided that I wanted to discuss this topic I was going to talk about my personal experiences as a Realtor, but turns out there was a bigger conversation to be had. I felt that it was more important to discuss Black homeownership. Specifically, the disparity in the homeownership rates when it comes to Black homeowners versus other races. Black homeownership is falling, the gap between Black and Non-Hispanic White households today is larger than it was in 1968. 

I read an article titled, “Snapshot of Race & Home Buying in America,” that breaks down homeownership rates by race across the country. For non-Hispanic white Americans, the homeownership rate consistently stayed above 71% from 2016 to 2019. While for black Americans in that same period, it was at 41%, a whopping 30 percentage points lower. Hispanic Americans held at about 45% during those three years, and the ownership rate among Asian Americans was more than 53%.

This info made me realize that for black people the housing crisis never ended! https://www.marketwatch.com/story/these-numbers-prove-african-americans-still-havent-recovered-from-the-financial-crisis-2019-02-06

With homeownership declining that means that black net worth is also on the decline and estimated to fall to zero by 2053 – no telling how this date will be affected due to the Coronavirus pandemic. So ultimately I feel that being black in real estate means I now have a responsibility to the black community. https://www.forbes.com/sites/eriksherman/2017/09/11/median-wealth-of-black-and-latino-families-could-hit-zero-before-the-centurys-end/#447ffc2b50f6

I/we must do whatever we can to change the statistics. Homeownership is the foundation and majority of wealth in every race. Because we are dead last in homeownership it is also one of the reasons we are dead last in net worth.

How I plan on doing my part to change in 2020 and beyond: 

• AWARENESS! Keeping this issue top of mind
• Providing proper resources–meaning lenders, credit repair, government and/or local programs
• Finding people who are not in a position to purchase yet, but helping them to understand the benefits of homeownership and the path to get there. 
• Encouraging other realtors, especially those who look like me, to do the same because together we can make a change.

In another article titled, “Closing the Racial Ownership Gap: Is It Possible? which was my question and hopefully is yours too at this point, it noted that we need a perspective change, meaning that this is a market that we can embrace, but that we first need to figure out why racial ownership gaps continue to persist.  

Education, or lack thereof, plays a major role and could be the key to growing minority homeownership. Some organizations are focusing on the educational side of this issue; the National Association of Real Estate Brokers (NAREB) is launching a nationwide campaign to foster greater ownership rates among minority populations— that’s a mouthful, I plan to obtain a greater understanding of the workings of this 22-city tour. They are also advocating for legislation to help address minority ownership opportunities with a proposed savings plan. Lastly, there was mention of a website that was created to provide info on applying for a mortgage, budget and credit tools, and the home buying process, but sadly the link doesn’t work—maybe it’s still in the process of being put together.

My mindset as Realtor is “your home, my passion” so I will be marketing in a way that brings awareness to the importance, advantages, and opportunities involved with homeownership. Helping those who aren’t even looking to buy a home take the necessary steps to not only start this journey, but finish as an educated homeowner who is building wealth. 

---

---