A coalition of organizations and individuals unveiled a 7-point plan to add 3 million Black homeowners by 2030. The goal: to shrink the 30-percentage-point Black-white homeownership gap that hasn’t budged since when housing discrimination was legal.
The national initiative, known as 3by30, was crafted over two years and is designed to increase and sustain Black homeownership. On June 18, it was introduced at an event in Cleveland, Ohio by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge, Sen. Sherrod Brown (D-Ohio) and Rep. Tim Ryan (D-Ohio).
Based on research from the Urban Institute, A net increase of 3 million Black homeowners by 2030 would increase the Black homeownership rate by nearly 10% and take steps toward leveling out Black-white homeownership rates , which have barely moved in 50 years.
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Black homeownership since the Great Recession
At 42.3 percent, the Black homeownership rate is lower than those of Asians, Latinos, whites, and the national average of 64.1 percent. According to 3by30, the 2008 housing market crash greatly affected Black homeowners, especially those between 35-54 years old. For that cohort, the homeownership rate is 72 percent for white households and just 40.8 percent for Black ones.
“Even more disturbing is the fact that in the decade since the end of the Great Recession, it has continued to fall, while every other demographic group has seen significant recovery. The reasons for this crisis are well documented and include systemic racism, equity stripping and a significant loss of affordable housing stock and mortgages.”
Now, history is threatening to repeat itself during the COVID pandemic recovery. While many Americans are partaking in a homebuying frenzy and taking advantage of exceptionally low interest rates, Black homeownership is on the decline.
According to the Urban Institute, if left unaddressed, Black homeownership will fall further by 2040, particularly in households 45-74.
This affects not only Black families, but the national economy, as homeownership is a primary means of accruing and passing down wealth.
A 7-point plan
Over two years, housing leaders identified seven complementary initiatives to increase and sustain Black homeownership. The steps require action from government, industry, advocacy, and homebuyers themselves. They are designed to be worked on simultaneously to increase effectiveness.
More than 100 industry and advocacy groups have signed on to contribute to the goal of 3 million Black homebuyers by 2030.
“The 7-point plan consists of concrete and sustainable steps that will substantially increase Black homeownership by 2030,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association. “We look forward to working with Secretary Fudge, HUD, the Black Homeownership Collaborative, and other stakeholders to ensure equal opportunities for everyone who aspires to enjoy the personal and financial benefits that come with owning a home.”
The 7-points of the plan are as follows:
- Homeownership counseling
- Down payment assistance
- Housing production
- Credit and lending
- Civil and consumer rights
- Homeownership sustainability
- Marketing and outreach
The plan puts a large emphasis on a nationwide advertising campaign letting Black Americans know they, too, can buy a home. Freddie Mac estimates that there were 1.7 million mortgage-ready Black millennials who made over $100,000 per year prior to the pandemic.
Simply informing these potential buyers could help narrow the homeownership gap.
Achieving the goal of adding 3 million Black homeowners by 2030 would raise the Black homeownership rate to an all-time high. However, 3by30 is just the first stage. The larger goal is to lay the groundwork to close the racial homeownership gap completely.
Some references sourced within this article have not been prepared by Fairway and are distributed for educational purposes only. The information is not guaranteed to be accurate and may not entirely represent the opinions of Fairway.