San Jose had the smallest differences between the share of homes owned by Black people and the share of the population that is Black.
A new data study by LendingTree (NASDAQ:TREE) on racial disparities in homeownership has determined Black people make up an average of about 15% of the population across the nation’s 50 largest metros, but they only own an average of 10.15% of homes.
In comparison, White people across the same area accounted for an average of 57.82% of the population, but they own an average of 69.01% of homes.
Among the major metros, San Jose had the smallest differences between the share of homes owned by Black people and the share of the population that is Black – 2.24% of the population identified as Black, while Black homeowners own 1.21% of owner-occupied housing units, a 1.03 percentage point difference. Other metros with smaller differences included Salt Lake City and Los Angeles at 1.14 and 1.40 percentage points, respectively. However, LendingTree noted the percentage point differences were not large because those areas are home to relatively small Black populations.
At the other end of the spectrum, Memphis had the biggest difference between the share of the population that is Black (47.33%) and the share of homes owned by Black people (35.97%) – a disparity of 11.36 percentage points. Other major metros with great disparities included New Orleans and Milwaukee, with differences of 9.41 and 9.13 percentage points, respectively.
“Buying a house can be a challenging experience for many, regardless of their racial or ethnic identity,” said LendingTree Senior Economist Jacob Channel. “Nonetheless, the data is clear that in the face of systematic issues, such as having fewer opportunities to access credit and less generational wealth, Black Americans are especially likely to struggle when it comes to home buying.”