In 2023, Black homeownership increased more year-over-year than any other racial demographic, according to the National Association of Realtors® 2025 Snapshot of Race and Home Buying in America. Still, at 44.7% nationally, the Black homeownership rate continues to lag far behind the White homeownership rate of 72.4%.
“While it’s certainly encouraging to observe this upward trend in Black homeownership, it has not matched the pace of growth seen in other racial/ethnic groups,” the report states, noting that while nearly 1.2 million Black households have been added in the last decade, the rate remains below 45%.
Pennsylvania’s 2023 Black homeownership rate was 46%, slightly higher than the national average, significantly higher than states like North Dakota (10%) and Montana (20%) and notably lower than states like Mississippi (58%) and neighboring state Delaware (56%).
Of all states, plus Washington, D.C., only 13 had a Black homeownership rate higher than the national rate.
“Black homeowners experience higher housing cost burdens in 39 states, spending more than 30% of their income on housing costs,” NAR notes. “Black (21%) and Hispanic (17%) applicants face significantly higher mortgage denial rates compared to White (11%) and Asian (9%) applicants.”
Moreover, by race, Black homeowners pay more for homeowners’ insurance than any other group. In 2023, the median homeowners’ insurance cost was $1,360 for Black homeowners, compared to $1,330 for Asian, $1,310 for White and $1,300 for Hispanic homeowners.
Black homebuyers were also the most likely (47%) to report discrimination during their transaction, and 5% of Black buyers reported experiencing discrimination based on race.
Overall, although the Black homeownership rate is increasing, it still falls behind every other racial/ethnic group, and data shows Black homebuyers face more challenges in every step of the homebuying process.
This Black History Month, read JustListed articles from Black Realtors® in Pennsylvania sharing their stories and shaping the industry:
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