Black homeownership in the U.S. has dropped to its lowest level since 2021, new data shows.
According to data from the real estate platform Redfin, the homeownership rate for Black Americans fell to 43.9 percent in the second quarter of 2025, down from 45.3 percent in 2024. This marks the sharpest year-to-year decline since Q3 of 2021.
The drop in Black homeownership comes amid rising unemployment among the demographic. The Black unemployment rate spiked to 7.2 percent in July, up from 6.3 percent in 2024 and the highest rate since October 2021.
“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” Redfin Chief Economist Daryl Fairweather said. “The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers.”
According to a January 2025 Pew Research Center report, Black Americans made up 18.6 percent of the federal workforce, which is significantly higher than the 12.8 percent share of the general population. That made Black workers especially vulnerable to the Trump administration’s sweeping cuts to civil service jobs.
“The dismantling of DEI programs in workplaces across the private and public sectors is also affecting Black Americans. As a result of eliminating DEI initiatives, companies are hiring or promoting fewer Black employees,” Fairweather noted.
While Black homeownership declined, other racial groups saw relatively minor changes. Hispanic homeownership slightly increased to 48.8 percent from 48.5 percent, while white homeownership dipped only 0.4 percent from 74.4 percent.
Fairweather noted that mortgage rates are improving. The average 30-year fixed rate has dropped below 6.5 percent after peaking above 7 percent earlier this year.
“Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing,” Fairweather said. “For Black households who feel locked out of the American dream, the good news is that affordability is improving… and buyers have been gaining negotiating power.”
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