Source: Mortgage News Daily
Homeownership by black Americans has “declined to levels not seen since the 1960s when private race-based discrimination was legal.” Like most demographic groups, black Americans saw homeownership gains evaporate during the housing crisis, but that community was hit harder than other groups and have not benefitted as fully from the recovery, according to the Urban Institute.
Black homebuyers bought homes at the peak of the bubble at higher rates than whites and Asians and often did so using subprime loans even though they qualified for prime loans. Two percentage points of the 6 percentage point slide happened from 2000 to 2010, the remainder happened in the following five years, three of them while the recovery was underway. White and Hispanic homeownership dropped less from 2000 to 2015, and homeownership rose for people in other racial groups (mainly Asian Americans).