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The Black homeownership rate during the second quarter dropped to 43.9%, according to data from Redfin. This is down from 45.3% one year ago, marking both its lowest level since the fourth quarter of 2021 and the largest year-over-year decline since the third quarter of 2021.

By comparison, the Hispanic homeownership rate inched up slightly (to 48.8% from 48.5% one year earlier) while small year-over-year declines were recorded in the non-Hispanic white homeownership rate (to 74% from 74.4%) and the Asian homeownership rate (to 62.1% from 62.8%).

The homeownership rate decline occurred as the Black unemployment rate reached 7.2% as of July, up from 6.3% one year before and the highest level since October 2021. Unemployment rates for other groups were relatively steady, with the Hispanic unemployment rate dipping to 5% from 5.3%, the white unemployment rate dipping to 3.7% from 3.8%, and the Asian unemployment rate rising to 3.9% from 3.7%.

“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” said Redfin Chief Economist Daryl Fairweather. “The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers. DEI programs have also been dismantled in workplaces across the private and public sectors, which may have resulted in fewer Black employees being hired or promoted.”

Fairweather added, “Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing For Black households who feel locked out of the American dream, the good news is that affordability is improving as mortgage rates come down, home prices are growing at less than half the pace they were a year ago, and buyers have been gaining negotiating power.”