Black First-Time Homebuyers See Strong Rebound in 2024: Zillow

In a recent survey conducted by Zillow, it was revealed that 62% of Black homebuyers purchased their first home in 2024, holding steady from the previous year. This figure is significantly higher than the overall first-time buyer rate of 44%, indicating a strong rebound in Black first-time homebuyers. This trend follows a sharp drop from 47% in 2019 to 35% in 2021, with the share of Black first-time buyers rebounding to 55% in 2022 and hitting a record 63% in 2023.

Zillow Senior Economist Orphe Divounguy attributes this rebound to several factors, including the rise of remote work opportunities, programs like down payment assistance, first-time buyer tax credits, and flexible lending options. These initiatives have helped increase access to homeownership for Black households, despite income disparities and saving difficulties. Additionally, the commitment of Black first-time homebuyers to homeownership, a key driver of generational wealth, has contributed to the rebound.

However, high housing costs and strict building regulations in many metropolitan markets limit opportunities for many buyers across the country, disproportionately impacting lower-income households, particularly Black households and other households of color. These areas often face supply constraints that drive up prices, and in markets with stricter building regulations, even fewer listings are affordable for the typical Black household.

A key measure of housing affordability is the monthly housing burden compared to household income. Black households face the steepest barriers, earning a median income of $54,896, far below the $95,213 needed to buy the typical U.S. home in 2024 without being cost-burdened (spending more than 30% of income on housing). As a result, just 17.6% of listings are affordable for the typical Black household, compared to 28.2% for Hispanic, 37.9% for white, and 56.8% for Asian households, underscoring persistent gaps in homeownership.



Despite these challenges, Black homeownership increased more than white homeownership in 2024 compared to 2019. Only Hispanic households saw a higher percentage increase in homeownership. This suggests that targeted policies and initiatives aimed at increasing Black homeownership can be effective in narrowing the racial homeownership gap.

To further support Black homebuyers, programs like down payment assistance, first-time buyer tax credits, and flexible lending options can be optimized by increasing funding and availability, expanding eligibility, and simplifying application processes. Additionally, targeted outreach and education efforts can help inform Black buyers about these programs and the flexible lending options available to them.

In conclusion, the strong rebound in Black first-time homebuyers in 2024, as reported by Zillow, is a testament to the commitment of Black households to homeownership and the effectiveness of targeted policies and initiatives aimed at increasing Black homeownership. However, persistent affordability challenges and supply constraints in many metropolitan markets require ongoing efforts to optimize programs and provide targeted outreach and education to support Black homebuyers. By doing so, we can help close the racial homeownership gap and promote generational wealth for Black households.