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While Black first-time home buyers are increasingly able to achieve the dream of homeownership in other parts of the country, Boston remains one of the most unaffordable markets for Black and white households alike.
A recent Zillow report found that 62 percent of Black home buyers purchased their first home in 2024. In comparison, overall, first-time buyers made up just 44 percent of the market, down from 50 percent in 2023. Additionally, the 62 percent of Black home buyers purchasing their first home is up from 47 percent in 2019 and 35 percent in 2021.
“Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth,” Zillow senior economist Orphe Divounguy said in a statement. “While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits and flexible lending options have helped increase access.”
St. Louis is the most affordable housing market for the median-earning Black household as 30.3 percent of listings are deemed affordable compared to the median income among Black households in 2024. Zillow’s defined “affordable” as a homeowner’s mortgage payment, insurance and other monthly housing costs not broaching 30 percent of their income.
Data from the Census Bureau’s 2022 American Community Survey separately analyzed by the National Association of Realtors showed that Mississippi (57 percent), South Carolina (55 percent), and Delaware (55 percent) were the states with the highest homeownership rates for Black Americans in 2022.
But Zillow’s analysis found Greater Boston is among the most unaffordable with just 3.6 percent of listings being deemed affordable for Black households.
NAR’s research showed that Boston wasn’t at the very bottom of homeownership rates in the nation but the homeownership gap is wide with white Americans having a homeownership rate of 69 percent while Black Americans have a rate of just 38 percent.
While high housing costs play a major role, the wealth gap between Black households and white households also drives the lack of affordability, data shows.
The median household income in Boston is 98,192 but for Black households, the median income drops to $77,684 while White households have a median income of 103,578.
