When we talk about homeownership in Chicago, it’s not just about buying a house. For many Black families, it is about creating stability, building wealth, and holding on to something for the next generation.
Yet too often, the dream feels out of reach.
The numbers tell the story. More than 70% of white families in Chicago own their homes. For Black families, the number is closer to one-third. That gap reflects affordability, generational wealth disparities, and structural barriers that have built up over decades.
Many new homeowners experience a second challenge after closing: sustaining ownership over time. They have worked hard to purchase a home, only to realize they were not fully prepared for the costs that come after closing day. That is why budgeting for both the “front door” and the “back door” is critical. Getting the keys is the front door. Staying in the home for years to come is the back door. A strong plan considers both.
There are three main challenges families must prepare for: affording the home upfront, sustaining it over time, and protecting their place in neighborhoods where development is driving up costs. Each one requires careful planning and the right resources.
The Affordability Hurdle
For many families, the first barrier is affordability. In neighborhoods like Englewood and West Garfield Park, more than 60% of renters are considered cost-burdened, meaning they spend too much of their income on rent. When so much of the monthly paycheck goes to housing, it leaves little room to save for a down payment or prepare for unexpected costs.
At the same time, Black borrowers often face higher mortgage denial rates and less favorable loan terms than white borrowers. Even after families purchase a home, costs keep rising. Between 2014 and 2023, Chicago’s property tax extension grew by more than 50%.
To overcome these challenges, families need to layer every resource available, from down payment assistance to property tax exemptions, rather than relying solely on savings. Programs from the Illinois Housing Development Authority, Neighborhood Housing Services, or Chicago Housing Authority can provide significant support, sometimes offering tens of thousands of dollars in assistance.
Planning for the Long Run
Buying the home is only the first step. Costs such as property taxes, homeowner’s insurance, maintenance, and emergency repairs can add up quickly. In Cook County, homeowners may be eligible for tax relief through programs like the Homeowner Exemption or Senior Exemption, but too many do not realize that those benefits exist.
Another important step is appealing unfair property assessments. Majority-Black neighborhoods have faced undervaluation for years, which can impact tax burdens and long-term wealth building. Families have the right to request a review, and doing so can make a real difference in keeping costs manageable.
It’s important to “stress-test” your plan before making a purchase. Look at what would happen if taxes increased, if interest rates go up, or if a major repair became necessary to ensure that you’re not just buying a home but can stay in it for the long term.
Protecting Neighborhoods and Stability
As neighborhoods develop and grow, housing costs in some communities are rising faster than incomes, potentially pushing out long-time residents. Affordable ownership models, like the Chicago Housing Trust, give families another path. These programs lower the upfront cost of buying a home and can even help limit future property tax increases. They do limit how much equity families can build, but for many, they provide a way to stay rooted in communities they love.
Building a Roadmap Forward
The barriers to Black homeownership in Chicago are real, but so are the solutions. Financial planning, layered resources, and strategic budgeting can help families not only get the keys but keep them.
Access to reliable information is key. Prospective homeowners can explore support through programs such as the Illinois Housing Development Authority, Neighborhood Housing Services of Chicago, the Chicago Housing Authority, the Chicago Housing Trust, and Cook County property tax resources, including exemptions and assessment appeals.
For additional financial education, Northwestern Mutual offers tools including the Complete Guide to Buying a Home, Planning for Homeownership, and What Buying a House Really Costs.
There’s a lot more to homeownership than just buying the property. It creates stability, wealth, and opportunities for the next generation. With the right plan, families can overcome the challenges, close the gap, and build the future they want.
