In honor of Black History Month, we wanted to shed some light on the state of Black homeownership in America today and moving into 2021. This blog post offers a snapshot into the facts, figures as well as the opportunities for Black homeownership that have been pulled from the 2020 State of Housing in Black America (SHIBA) report, commissioned by The National Association of Real Estate Brokers. The full report can be downloaded here.

Against the backdrop of popular culture, policymakers and scholars have emphasized homeownership as one aspect of the ‘American Dream.’ Despite this, it is no secret that minority families, particularly Black families, have experienced structural inequalities and cumulative disadvantages, preventing them from accessing and securing stable housing.

 “Because of cumulative disadvantages, Blacks accrue fewer benefits of higher earnings, education, and homeownership than do Whites. Simply put, the effects of discrimination and inequality-- in housing, education, employment, health care, the justice system, and other institutions-- suppress access to and the accumulation of wealth. These intergenerational problems get passed down to new generations of Black Americans, which means that even with higher levels of educational attainment, employment opportunities, and access to economic and social capital because they started at a deficit, it is difficult if not impossible to catch up to similarly-situated others.”

COVID-19

With the onset of COVID-19 in early 2020, the lives and economic viability of Black Americans were thrown into uncertainty. When there were already disparities in access to healthcare amongst Black Americans, COVID-19 created an environment where they were the most at risk of becoming hospitalized. In June 2020, Black people were 5 times more likely to be hospitalized than non-Hispanic White persons. This has been exacerbated by the fact that Black Workers are more likely to work in ‘front-line’ jobs, like in public transit, childcare, healthcare, and social services that carry a higher risk of infection. This has led to high rates of job and income-loss, which has then directly affected 8.5 percent of Black borrowers reporting having had no confidence in their ability to pay their mortgage compared to 2.8 percent of White borrowers.

Black homeownership rates

To put the Black-White homeownership gap further into perspective, in 2020 the gap was at an all-time high at 26 percentage points, less than one percent difference between the 26.8 percentage point gap in 1960, prior to the passage of the 1968 Fair Housing Act. See Figure 1.3 from the SHIBA report.

Where do Black homeowners live?

The majority of Black Americans are concentrated in 20 Metropolitan Statistical Areas (MSAs). The Dallas-Fort Worth and Arlington area makes the list. See Table 1-1 from the SHIBA report.

Note the Housing Opportunity Index 2020 Q1 in the last column. This is a measure of the share of homes sold in an area that would be affordable for those earning the local median income.

Are Black Americans being priced out of these Metropolitan areas? While redlining and racial segregation have contributed greatly to the problem, income-segregation has also increased.

Home values for Black Americans

Considerable evidence has shown that overall homes tend to have lower value in predominantly Black neighborhoods than in neighborhoods with lower minority concentrations. This is just as true for new homebuyers as for all other homeowners. What’s more, research also suggests that as more minority residents move into the neighborhood, housing appreciation also tends to decline. See Table 1-2 from the 2020 SHIBA report.

Opportunities for the market: mortgage applications

In 2019, Black homebuyers accounted for $113 billion in home purchases. What does this mean for real estate professionals? A potential of $6.8 billion in real estate commissions for real estate professionals, working specifically with Black Americans. The fact that 690,000 mortgage loans were either rejected, incomplete or withdrawn in 2018 and 2019 suggests that Black Americans are not being met halfway. Real estate professionals who conduct business in the South should especially take note of the number of originations of mortgage applications occurring there. See Figure 1-16 from the SHIBA report.

Opportunities for the market: Black Millennials in metro areas

Despite lower homeownership rates than previous generations, 89 percent of Black Millennials report their intentions of becoming homeowners eventually. See the concentration of Black Millennials by metropolitan area in Figure 1-17 from the SHIBA report. Dallas-Fort Worth and Arlington are amongst the metropolitan areas with high concentrations of Black Millennials.

These are just a few of the highlights from the 2020 State of Homeownership in Black America report. Read the full report here.

Black Americans, if you live in the Dallas-Fort Worth and Arlington metropolitan area, come see what Housing Channel has to offer you in terms of affordable housing, options for down payment assistance and financial wellness counseling.

Is one of the barriers to homeownership an inability to pay your rent because of job or income loss due to COVID-19? You are not alone.

Housing Channel may be able to help your situation.

Fill-out and submit our rental assistance application on our homepage. If you are currently a homeowner and struggling with your mortgage payments, we have some options for you as well.

There’s not much time left before the malls are flooded with busy holiday shoppers. And for the yearlong planners, the shopping probably started a long time ago. A recent blog from VantageScore emphasizes the importance of making sure shoppers don’t destroy their credit score right before the busiest home-buying season. 

The holidays may still seem far off, but when the possibility of securing a home in the spring is on the line, the time to plan is now. 

So, what is the main area where consumers hurt their credit during the holidays? Credit cards. 

First and foremost, if you apply for a new credit card or higher spending limits on existing cards for the holiday season, the card issuers will probably request your credit score from one or more of the national credit reporting companies (CRCs), Equifax, Experian and TransUnion. The same is true if a new car is on your shopping list or if you choose to open a store credit card account. Just as they would at any other time of year, those score inquiries from lenders can cause a dip in your credit score. 

Here’s what VantageScore suggests for consumers’ shopping season strategy: 

Avoid having these holiday loans lower your score in advance of any major borrowing you may be planning in the early months of the new year.  

MAXIMIZE your score before applying for holiday-related credit. 

“Going green” isn’t just a craze or fad. When it comes to your home, it can actually prove to be beneficial on a number of fronts. From increasing the value of your home to helping stymie the need for frequent home repairs, creating an eco-friendly home will help you save on energy costs; it can also produce less pollution, thus improving your home’s indoor air quality. 

According to the Environmental Protection Agency, Americans spend 90 percent of their time indoors. With that in mind, who wouldn’t want to reduce their carbon footprint inside their home? 

M300 reveals 9 ways that you can help your home “go green.” 

1. Get a programmable or smart thermostat. Program your HVAC to match your schedule, so you’re not using it when you’re not at home. 

1. Seal air leaks. Caulk or weather-strip a leak. Leaks can occur near anywhere where there is plumbing, ductwork and electrical wiring.  

1. Replace incandescent bulbs with LEDs or CFLs. Light-emitting diodes and compact fluorescent lightbulbs can be more money up front, but they end up lasting 3 to 25 times as long! 

1. Upgrade to appliances with an Energy Star label. The Energy Star symbol is the government-backed symbol for energy efficiency. Your appliances stay plugged in all day!  Choose an Energy Star appliance that uses 10 to 50 percent less energy. 

1. Save water. Switch to low-flow showerheads. Don’t forget to fix leaks! Install aerators on your faucets. 

1. Go with sustainable building materials. Renovating or buying a new home? You have choices, everything from recycled steel beams to composite lumber for decks! 

1. Use products with low VOC counts. Commonly found in paints and cleaning products, VOCS are harmful gases that can contribute to health issues.  

1. Install solar panels. This can significantly cut down on utility costs. Remain off-grid or tie into your local utility company’s solar power-grid. 

1. Get LEED certified. Want to increase your home’s resale value? Consider this not easy, but not-impossible certification, all for the benefit of the Earth! 

1. According to Freddie Mac, in 2018, 4.9 million Hispanic millennials (between the ages of 22 and 37) were “mortgage ready,” many of whom are located in Texas.   

    

2. According to the U.S. Census Bureau, between 2009 and 2019, Hispanics accounted for 40.4% of household formation growth in the United States. 

3.  According to the National Association of Home Builders, the growth of Hispanic housing contribution to GDP between 2000 and 2018 tripled from $110 billion to $371 billion dollars. 

4.  According to the U.S. Census Bureau, there was a 31.4% net growth of Hispanic household formation in 2019,  or another way to put it, an additional 435,000 households.  

5. “...it will be the Latino community’s youth, strong work ethic and desire for homeownership that will once again drive homeownership growth as the country rebounds from a post-pandemic economy.” 

Visit our Youtube channel to watch and subscribe to more statistics about the state of Hispanic homeownership for #NationalHispanicHeritageMonth. 

We hope that you will find the following testimonials from people on LinkedIn who have lost their jobs due to COVID-19 as words of encouragement.

We think #6 on Yashaswi’s reminders for COVID job loss anxiety is VITAL!

If you’ve lost your job during this time and/or having trouble paying your mortgage, Housing Channel can provide you with options on how to prevent foreclosure. 

Make an appointment with Housing Channel TODAY.

817.924.5091

counseling@housingchannel.org

The following is an excerpt from an article written by Susan Schrock of The City of Arlington on September 1, 2020.

Read the full article here.

Have you lost your job and/or having difficulty paying your mortgage?

Homeowners can discuss their financial situation and meet directly with on-site, HUD-certified housing advisors to discuss their financial options. 

Housing Channel can help you with the following:

For Homeowners

• Discuss foreclosure alternatives

• Identify potential solutions to keep your home

• Serve as your liaison to communicate directly with your mortgage servicer

Make an appointment with Housing Channel TODAY.

(817) 924-5091 | counseling@housingchannel.org

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Following are three tips on buying a home with student loan debt:

1. IMPROVE YOUR DTI RATIO

2. INCREASE YOUR CREDIT SCORE

To find out more on where to safely get your credit report, click here.

3. CONSIDER DOWN PAYMENT ASSISTANCE AND FIRST-TIME HOME BUYER PROGRAMS

Housing Channel provides guidance on a number of downpayment assistance programs in the Dallas-Fort Worth area including:

• The City of Arlington Homebuyer Assistance Program (AHAP)

• The City of Fort Worth Homebuyer Assistance Program (HAP)

• The City of Irving and Plano Homebuyer Assistance Programs

• For a full list of our DPA programs, visit ourDownpayment Assistance page.

To find out more about other statewide programs, visit TSAHC’s DPA website.

If you’re thinking about buying a home, we recommend registering for Housing Channel’s Homebuyer Orientation, found on our Classes page. It’s an hour full of information on qualifying for mortgage and downpayment assistance programs; plus, you’ll qualify for a free credit report analysis upon completion of our intake application.

Many homeowners are experiencing financial hardship during the COVID-19 pandemic or are worried that they will experience such hardship soon.

See the entire homeowner’s guide here.