Black first-time homebuyers are bucking a national downturn as well as defying affordability barriers and systemic inequities to achieve homeownership at record rates.
While first-time homebuyer rates have dropped nationwide, Black buyers have seen the strongest rebound, according to a Zillow survey. In 2024, 62% of Black homebuyers purchased their first home, holding steady from 2023. By comparison, first-time buyers made up just 44% of the overall market, a drop from 50% the year before.
The resurgence follows years of decline. After peaking at 47% in 2019, the share of Black first-time home buyers plummeted to 35% in 2021. But by 2022, it had climbed to 55%, then hit a record 63% in 2023—outpacing other racial groups and the broader market.
“Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth,” said Zillow Senior Economist Orphe Divounguy. “While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits and flexible lending options have helped increase access.”
Remote work has also played a role, giving some Black renters the flexibility to seek homes in more affordable regions. Zillow research finds Black renters are 29% more likely than other renters to be at a tipping point where remote work could make homeownership possible.
But structural barriers remain. High housing costs and restrictive building policies continue to limit opportunities, disproportionately affecting Black and lower-income households. Many metro areas face supply shortages that drive up prices, making homeownership even less attainable.
Black households also contend with the steepest affordability gaps. The median Black household earns $54,896—far below the $95,213 needed to buy the typical U.S. home in 2024 without being cost-burdened. As a result, only 17.6% of listings are affordable for the average Black household, compared to 28.2% for Hispanic, 37.9% for white, and 56.8% for Asian households.
Among U.S. cities, St. Louis ranks as the most affordable housing market for Black households, with 30.3% of listings within reach. Other accessible markets include Birmingham (29.5%), Memphis (29.0%), Detroit (28.6%), and Baltimore (25.8%). The least affordable housing markets for Black buyers are concentrated on the West Coast, including major California metros and Seattle.
Despite the challenges, Black homeownership has grown at a faster rate than white homeownership since 2019, with only Hispanic households seeing a larger percentage increase.
