In the video “The Truth About Race and Homeownership,” I discuss the sad truth about race, homeownership, age, and other factors in America. I mention two recent research reports, one from the National Association of Realtors and the other from the Federal Reserve Bank of New York, highlighting the problem.
According to the NAR report, in 2022, 88% of all first-time home buyers in America were white, while Hispanic people represented 8%, black people represented only 3%, and Asian Americans represented only 2% of all first-time home buyers. The second report from the Federal Reserve Bank of New York showed that the Community Reinvestment Act has barely moved the needle regarding lending opportunities and access to credit for low to moderate-income communities.
I emphasize the significance of the CRA, passed 45 years ago, to provide more access for people of color, low to moderate-income communities, and those historically locked out of the credit markets. However, the Federal Reserve Bank of New York report showed that there had been virtually no impact in affording lending opportunities and access to credit for low to moderate-income communities.
This is shocking and should appall anybody who cares about financial inclusion, equity, and access. We have much work to do to expand home affordability opportunities and access for people of color, and we need to do better.