A new data study from Zillow (NASDAQ: Z, ZG) found 62% of Black homebuyers purchased their first home in 2024, just slightly below the record 63% level in 2023. In comparison, overall, first-time buyers made up just 44% of the market, down from 50% in 2023.
Zillow attributed the high percentage share to remote work that enabled some Black renters with more flexibility to pursue homeownership in affordable areas. Zillow said its research determined Black renters “are 29% more likely than other renters to be at a tipping point where remote work could make homeownership achievable.”
Still, affordability presents a challenge to Black households, which earn a median income of $54,896, which is below the $95,213 needed to buy the typical home in 2024 without being cost-burdened (spending more than 30% of income on housing). As a result, just 17.6% of listings are considered affordable for the typical Black household, compared to 28.2% for Hispanic, 37.9% for White, and 56.8% for Asian households.
Zillow found that St. Louis was the most affordable housing market for typical Black households last year, with 30.3% of listings within their financial reach. Other affordable markets included Birmingham (29.5%), Memphis (29.0%), Detroit (28.6%), and Baltimore (25.8%). The least affordable markets for potential Black home buyers were concentrated on the West Coast, including major California metros and Seattle.
“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.”
