Black homeowners start to close gap in property values

[marmar]

Black homeowners’ property values are on the rise across the country, with some of the biggest upswings in Midwestern and Southern states. The boon to Black homeowners, after decades of lagging property values, could help them close a racial wealth gap that has kept the American dream out of reach.

Home values increased on average 84% in majority-Black ZIP codes between 2016 and 2023, outpacing growth in white ZIP codes, where values grew 69%, according to a Stateline analysis of federal housing and census data.

...(snip)...

In Detroit alone, rising home prices in Black neighborhoods have created almost $3 billion in new wealth for Black homeowners, according to a University of Michigan study released in April. That study focused on 2014 to 2022, the decade after the city’s bankruptcy. The Stateline analysis suggests the turnaround extends far beyond Detroit, across the Midwest and South.

The Stateline analysis identified 92 majority-Black ZIP codes nationally, including nine in Detroit and six in Cleveland, where home values have increased since 2016 after losing value earlier in the 2000s. There were 22 such ZIP codes in Georgia, 21 in Michigan, 17 in Ohio and 13 in Illinois, with others in Alabama, Connecticut, Florida, Indiana, Kentucky, Missouri, North Carolina, Tennessee and Wisconsin. .................(more)

https://michiganadvance.com/2024/05/15/black-homeowners-start-to-close-gap-in-property-values/

[Johnny2X2X]

1. Home ownership is still the basis of the American Dream

It's really the primary way most families build any wealth.

And yeah, interest rates are a little higher than average right now, so it's a little harder for some people to buy houses, but the fact is home ownership rates are still well above hisotrical rates right now. Home ownership rates are higher now than in the 60s, 70s, 80s, or 90s. The only times it was higher was in the 2000s because of those crazy sub prime rates with no omney down and then again in 2020 when ownership spiked during Covid.

The difference is that renting has never been worse than right now. Rents went way up, and even though they've started to go down the last year and change, they're still elevated. And landlords are worse than ever, they ask for more and more from renters not just per month but in security deposits and cleaning fees.

For most buyers, the gating issue isn't the interest rate, but the down payment, plus fees. You need $15K cash minimum in most places to buy right now, some places that is much higher. Getting $15KK together when your rent went up $300 a month is tough.

But most people still get there, they set a plan, budget, and are able to save what they need and get their debt under control to qualify for a loan. MAke a plan, stick to it, the benefits of home ownership are much more than just a tool for building wealth. Your home is security for you, even if things go sideways in life, the banks will bend over backwards to keep you in your home. Your mortgage is generally more affordable than rent. There's just the security of having your own roof over your head. And the equity is another layer of security, we aren;t in a bubble, we're in a scarcity situation, that's why values have gone up, they aren't going back down. So after a few years, you're sitting on $60K in equity or more, you now can accept a job in another state if the dream job comes along, because your equity will allow you to sell your house at a profit and use the proceeds for a down payment on a house in your new city.

Really great to see cities doing better. Downtown Detroit is near and dear to my heart, I love that city. So many great things going on there right now, love that the city's long time residents are sharing in the money that is pouring into the city.