Report: Just 7 Percent of Homes for Sale Affordable to Black Households

An article by Gabriella Cruz-Martinez in Yahoo Finance highlights how the housing crisis disproportionately impacts Black and Latino households. According to research from Redfin, “The average Black household could afford just 7% of listings for sale last year on a median income, while white households could afford 22% of listings. The share was nearly as bad for Latino households, which could afford just 10% of homes for sale.”

Across the country, only 16 percent of homes were affordable to the average homebuyer, ethnicity notwithstanding, a drop of 41 percent since 2022. In some of the most expensive markets like Anaheim, California, affordability rates are below 0.5 percent for Black and Latino households and 2 percent for white households. “At a national level, an average homebuyer in 2023 had to earn an annual income of at least $109,868 if they were aiming to spend under 30% of their income on a monthly mortgage payment for a median-priced home.”

The prognosis is less grim for 2024, as rent prices have started to decrease, but average rent costs remain above pre-pandemic levels. “According to Redfin, the increase in housing supply throughout 2024 and a burst of new construction could cause prices to drop by 1% on average by year-end.”