The Black homeownership rate may be teetering at 42 percent but the Black Homeownership Collaborative has a lofty goal of helping at least three million Black Americans become homeowners through a partnership with multiple organizations.
The organization recently launched its 3by30 initiative and is leading a steering committee that includes the National Association of Realtors, NAACP, Bank of America and the National Urban League. To achieve its goal, it has developed a seven-point action plan which would allow Black homeownership rates to increase by at least 10 percent by 2030.
The plan includes homeownership counseling, down payment assistance, housing production, credit and lending, civil and consumer rights, homeownership sustainability and marketing and outreach. In addition, each step of the plan supports potential homebuyers as well as existing homeowners to sustain their property.
“We do need to do something aggressive if we expect to create more homeownership opportunities in this country,” Bryan Greene, vice president of public advocacy for the NAR told Apartment Therapy. “We have an interest in the housing industry, and I think society at large, to try to find ways to close these gaps, because our economy and our society benefit from more housing opportunities.”
In 2019, the homeownership of Black Americans dropped to 42 percent — the lowest since 1970. The reasons for this dip in Black homeownership are many as inequities in the real estate industry persist. Issues such as redlining, appraisal discriminiation, lack of access to credit, low credit and high debt ratios are just a few of the reasons that have allowed Black homeownership to remain low in comparison to other racial groups.
The Urban Institute recently released data from a recent study that revealed some startling findings in relation to Black homeownership. While it is projected that household growth will come from families of color, if the homeownership rate is not nurtured through a program such as The Black Homeownership Collaborative, the percentage of homeownership will continue to fall for age groups under 85. In addition, the Black homeownership rate has the potential to decrease even more by 2040 — especially amongst households in the 45-74 demographic.
“The legacy of discriminatory practices, as well as official government practices and longstanding harm, has left us with great disparities in wealth and opportunity,” Greene told Apartment Therapy. “The goal with 3by30 is to recognize that [legacy of discrimination] and to try to figure out where we can begin to make more progress.”