Black housing wealth has seen an increase from 2015 to 2022 in spite of home values that are lower on average, according to a new report from the Urban Institute. The report found that the Black homeownership rate saw a rise from 41.2% to 44.3% from 2015 to 2022, alongside an increase in equity from $1.11 trillion to $2.17 trillion during the same period.
Despite the gains, Black homeowners still claim just 5.9% of total housing wealth, despite composing 11.9% of total households, according to the report. According to the Urban Institute, this dynamic can be attributed to decades of systemic racism in housing policies and practices, coupled with the disproportionately negative impact that recent crises and economic shocks have had on Black families.
The report also shed light on the fact that in 2022, the rate of Black homeownership was 44.3% against 65.1% for the population overall. In 2022, the average home value for Black homeowners was $318,000 against $423,000 for all homeowners, also per the report.
The report, however, sought to parse this national data out at the local level, specifically exploring the relationship to Black homeownership rates and housing wealth claimed by Black families.
Examining 100 counties with at least 5,000 Black residents (as of 2022), the report found only four instances where total housing wealth for Black families was equal to or greater than the Black homeownership rate—meaning Black home values on average were similar to all other homes.
Prince George’s County, Maryland, was at the top of the list, with Black households owning 66.9% of the county’s total housing wealth, and Black homeowners comprising 61.8% of households—much higher than the national average. Black families made up 64.8% of all households in Prince George’s County.
In contrast, Shelby County, Tennessee, saw Black households holding only 29% of the county’s total home value, while the Black homeownership rate sat at 42.5%. Black households made up 53.4% of the population in Shelby County.
In raw numbers, that means the average Black-owned home in Shelby County was valued at $215,887, significantly lower than the average value of a home for all other homeowners, which was $369,937.
Also important is analyzing where housing wealth for Black families is changing. The Urban Institute highlighted nine counties that saw housing wealth disparities narrow the most between 2015 and 2022, spread across the South, Midwest and Northeast. Counties where the housing wealth gap increased during this time period were similarly spread across a large geographic region, from Texas, Alabama, Colorado, Illinois, Kentucky, New Jersey and North Carolina.
Again, all of these counties experienced their own specific trends and dynamics, with the report highlighting Dekalb County, Georgia, as the county that did the most to close the housing wealth gap, but attributing that to an increase in Black homeowners rather than a proportional increase in Black-owned home values (Black-owned homes were valued at $301,000 versus $502,000 for non-Black homeowners).
The report highlights these local dynamics as a reason to view the disparities in housing wealth and homeownership as a localized problem, requiring “better-tailored solutions” from policymakers. For instance, counties with high homeownership rates but proportionally low home values for Black households could focus on subsidies for renovations, the report suggests, while those with low or shrinking homeownership rates can concentrate on programs like down payment assistance.
