Which Metros Have Largest White-Black Homeownership Gap?
LendingTree compared Black homeownership rates relative to their share of a metro’s population. In Fla., the biggest gap was in Jacksonville, the smallest in Orlando.
NEW YORK – A new study looked at America’s 50 largest cities and compared homeownership rates based on race. LendingTree, an online lending marketplace, looked at the population share of African Americans in each of America’s 50 largest cities and compared it to the percentage of Black homeowners in those cities.
Researchers’ conclusion: Black people were underrepresented across the 50 cities – even in those with the largest Black populations.
Black homeowners own the largest percentage of homes relative to their total population in Portland, Ore. In Portland, African Americans make up 2.8% of the population and own 1.8% of homes, researchers note.
In Memphis, Tenn., the difference is starkest: Black Americans comprise 47% of the total population – the largest racial group in the area – but own only 35% of the occupied housing units there. Other cities in which Blacks own the smallest share of homes relative to their overall population are New Orleans; Milwaukee; Virginia Beach, Va.; and Baltimore.
The four Florida cities in LendingTree’s study fall somewhere in the middle of the 50 largest U.S. cities.
Florida metro rankings, balance of Black-white homeownership rates
20. Orlando: 16.58% Black-owned homes – 4.65% less than white homeowners
23. Tampa: 12.21% Black-owned homes – 4.93% less than white homeowners
35. Miami: 21.24% Black-owned homes – 6.82% less than white homeowners
42. Jacksonville: 21.45% Black-owned homes – 8.28% less than white homeowners
Researchers said the disparities are likely due to Black Americans earning lower incomes and having less household wealth than other racial groups, though the study did not dig deeper into the reasons for the disparity. Both measures may be attributed to historical and systemic discrimination. African Americans also tend to have greater difficulty accessing credit, even when their incomes are the same as applicants of different races, according to the study.
“Furthermore, the legacies of historical policies meant to disenfranchise Black home buyers, like redlining, contribute to the disproportionately low homeownership rate among Black Americans today,” the study notes.
Source: “Black Americans Own a Disproportionately Small Number of Homes in Each of the Nation’s 50 Largest Metros,” LendingTree (Feb. 16, 2021)
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