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4w ago

Black Homeownership Drops to 43.9%, Lowest Since 2021, as Job Losses Mount

Economists cite rising Black unemployment—tied to federal layoffs, DEI rollbacks—as a key driver.

Ethelynn and Michael Vaughn stand for a portrait at their home in the Lower Ninth Ward on August 26, 2025, in New Orleans, Louisiana.
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Overview

  • The Q2 2025 Black homeownership rate fell to 43.9% from 45.3% a year earlier, marking the steepest annual decline since late 2021, Redfin reported.
  • Black unemployment reached 7.2% in July versus 6.3% a year earlier, the highest since 2021, while rates for white, Hispanic, and Asian workers moved little by comparison.
  • Black women faced a sharp rise in joblessness to 6.3% from 5.5%, a notable risk given that single women accounted for 33% of Black homebuyers in a recent NAR analysis.
  • Redfin’s chief economist links the downturn to a wave of federal job cuts and the dismantling of DEI programs; federal employment fell by about 84,000 since January, including 5,000 in July.
  • Affordability could improve as 30-year mortgage rates slip below 6.5%, yet Black borrowers still encounter higher denial rates, and FHFA’s move to allow VantageScore 4.0 may only modestly ease access to credit.