Black Gen Zers and Millennials Are Half As Likely to Own Their Home As White Counterparts

Key Terms

redlining regulatory

Redlining is the practice of denying or limiting financial services—like mortgages, loans, or insurance—to people living in particular neighborhoods, often based on race or income rather than individual creditworthiness. Think of it as drawing a map where entire areas are marked off as off-limits; for investors it signals legal, regulatory and reputational risk, can depress property values and local economic growth, and may affect the performance of loans, real estate and financial firms.

Redfin reports 14% of Black Gen Zers and 32% of Black millennials own their home, roughly half the rate of white Gen Zers and millennials

SEATTLE--(BUSINESS WIRE)-- One in seven (14.2%) Black Gen Zers own their home nationwide, compared to nearly one in three (31.6%) white Gen Zers. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

The gap is similar for millennials: 32% of Black millennials own their home, compared to 66.6% of white millennials.

Homeownership Rate Has Declined For Black Gen Zers and Millennials, Risen For White Gen Zers and Millennials

Black Gen Zers’ homeownership rate was 16.3% in 2023, compared to 14.2% today. Black millennials’ rate was roughly 33% in 2023, compared to 32% now. The homeownership rate declined for Black Gen Zers and millennials because many people in those categories who formed a new household—such as by moving out of a parent’s home—ended up renting rather than buying.

For white Gen Zers, the homeownership rate has risen from 29.7% in 2023 to 31.6% today; white millennials saw the rate increase from 65.3% to 66.6%.

It’s Hard to Afford a Home. It’s Especially Hard For Young, Black People.

The overall homebuying landscape has been difficult over the last few years due to high home prices, high mortgage rates, and widespread economic uncertainty. That’s particularly true for young Americans, who typically have less money than their older counterparts.

And among those young Americans, it is typically more difficult for Black people than white people to afford a home. There are several reasons for that:

• The racial wage and wealth gap. The typical Black worker in the U.S. earns 79 cents for every dollar earned by a white worker. For every $100 in wealth held by white households, Black households have $15. That makes it harder to save money for a down payment and to afford monthly mortgage payments.
• The employment gap. The unemployment rate is 7.1% for Black men, roughly double the 3.7% rate for white men. It’s a similar story for women; the unemployment rate for Black women is 6.7%, compared to 3.2% for white women.
• Discriminatory policies. Past policies like redlining and discriminatory housing covenants caused generations of Black families to miss out on gaining wealth through owning valuable property. Today, there are still systemic barriers to homeownership for Black families; for example, Black homebuyers are twice as likely to have their mortgage applications rejected than white homebuyers.
• Family money gap. Black families are less likely than white families to have generational, inherited wealth. That makes it harder to buy homes. For example, a recent Redfin survey conducted by Ipsos found that 9% of recent Black homebuyers used a cash gift from family for their down payment, compared to 15% of recent white homebuyers.
• Credit scores. The median credit score for Black Americans is lower than it is for white Americans, which makes it more challenging to get a mortgage.

“Black millennials and Gen Zers are bearing the brunt of the racial homeownership gap because since they have reached homebuying age, the country has faced significant financial challenges and a major housing supply shortage,” said Redfin Chief Economist Daryl Fairweather. “Young Black Americans started out behind their white counterparts because they’re less likely to have property and money passed down from their families because of historical discrimination in housing and employment. Now they are coming of age during turbulent economic times that have impacted Black workers more than white workers. The Black unemployment rate rose to nearly 17% during both the Great Recession and the pandemic, compared to 9% and 14%, respectively, for white Americans.”

Narrowing the racial homeownership gap would require not only things like increasing the supply of relatively affordable starter homes in the U.S., which would benefit all young Americans, but policy changes that would make a meaningful difference for Black buyers. Things like down-payment assistance, first-time buyer programs, affordable homeownership programs, and better access to fair, affordable credit could help Gen Z and millennial Black buyers get their foot in the door.

The bright spot for homebuyers is that we expect affordability to start improving this year, as wages grow faster than home prices and mortgage rates tick down. Buyers also hold negotiating power.

Overall, Gen Z and Millennial Homeownership Rates Are Ticking Up

A separate Redfin analysis found that overall, Gen Z and millennial homeownership rates ticked up in 2025. This data, which breaks down that generational data by race, suggests that young white homebuyers drove the increase.

And per another Redfin analysis, the overall homeownership rate for Black families is sitting at its lowest level since 2021. Nationwide, 43.9% of Black Americans owned their home as of mid-2025, down from 45.3% a year earlier. For comparison, 74% of white Americans owned their home, down slightly from 74.4% a year earlier.

The Racial Homeownership Gap Is Smaller But Still Significant For Older Americans

There’s also a substantial racial homeownership gap for older generations.

Just over half (53.1%) of Black Gen Xers own their home, while the rate is 80.6% for white Gen Xers. And three in five (60.4%) Black baby boomers own their home, compared to 85.5% of white baby boomers.

In percent terms, the racial homeownership gap is smaller for older Americans. Overall, homes were more affordable for baby boomers and Gen Xers when they were young; even buyers who faced discrimination were in a much less expensive and less competitive market than today. But there is still a profound gap, stemming largely from the factors noted above, like historically discriminatory policies and the racial income gap.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/homeownership-rate-by-race-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260203168282/en/

Contact Redfin

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Kenneth Applewhaite

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Source: Redfin