Single black women are leading the charge in homebuying across the nation, now representing over one-quarter of all black homeowners in America. This remarkable growth far outpaces gains made by black men, according to data from the National Association of Realtors’ 2023 report.
However, black women still shoulder tremendous economic obstacles on the road to homeownership. Burdensome student debt, restrictive mortgage lending practices, and overrepresentation in underpaid occupations continue to impede their homebuying power.
The share of solo female buyers jumped to 35.4% of all black home purchasers from 2020 to 2021, an increase from 32.4% between 2017 and 2018. This represents a meteoric annual growth rate of 7.3%. Meanwhile, the growth rate for single black men languished at just 3.4% in the same 2018–2020 time period, per Realtor.com’s analysis.
“There’s no question black women are leading the charge into homeownership,” said Jacob Channel, senior economist at LendingTree. “But that doesn’t diminish the societal barriers still firmly in place.”
Channel points to three key hurdles that persist for black women compared to other demographics: burdensome education debt loads, inconsistent mortgage access, and overrepresentation in low-wage work.
The average black female undergraduate carries a crushing $41,466 in student loans their first year out of school. This hampers their ability to save and qualify for home loans down the line. Lenders routinely cite monthly student loan payments when assessing mortgage eligibility.
Additionally, major U.S. banks have a track record of offering black women riskier, higher-cost subprime mortgages. Sarah Hassmer of the National Women’s Law Center notes that even today, black women face a 256% higher chance of acquiring unsafe loans compared to similar economic-status white male borrowers. Additionally, you can also read about- U.S. Credit Card Debt Skyrockets to $1.13 Trillion.
Finally, concentrations of black women in child care, hospitality, and similarly undervalued occupations depress wages and make saving for down payments exceedingly difficult. Hassmer stresses that homebuying barriers for black women ultimately reflect larger issues of societal and economic inequality along both racial and gender lines.
While acknowledging the tenacity and resolve of black women in homebuying, experts emphasize that much work remains to rectify systemic disadvantages and predatory practices targeting these motivated homebuyers. “It’s demonstrably true that if you’re a black woman in America, you’ll likely have an unduly harsh time buying a house,” Channel says. “Social hurdles exist that should not exist.”
