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Harvard Report: Black Homeownership Gains Have Halted

December 30, 2025

Harvard's Joint Center for Housing Studies released its 2025 report revealing a severe housing affordability crisis affecting American families, with existing home sales dropping for the first time in three decades due to rising prices and interest rates. The median home price has surged 60% since 2019 to $412,500, requiring an annual income of $126,700 that only one in seven renter households can afford, while home insurance costs have jumped 57% and property taxes continue climbing nationwide. Black and Latino families face particularly stark challenges, with homeownership gaps remaining stuck at approximately 27 percentage points compared to white families, and last year's data showing 771,480 people experiencing homelessness.

Who is affected

  • The nation's 46 million renter households (only 6 million earning enough to afford median-priced homes)
  • 771,480 unhoused people in 2024
  • Black Americans (facing a 27.7 percentage point homeownership gap)
  • Latino families (facing a 25.2 percentage point homeownership gap)
  • Middle-class families experiencing affordability challenges
  • Families of color and first-generation homebuyers facing barriers
  • Homeowners and renters in disaster-prone areas (Miami, California, Florida, Louisiana)
  • Low-income households and senior citizens (referenced regarding tax abatement programs)

What action is being taken

  • The Downpayment Toward Equity Act legislation has been refiled by Congressional Representatives Maxine Waters, Al Green, Sylvia Garcia, and Ayanna Pressley
  • Some state and local governments have implemented property tax abatement programs (limited to senior citizens and/or low-income households)
  • Home prices are currently increasing 3.9% year over year
  • Private insurers are raising premiums and, in some cases, reducing coverage or pulling out of markets entirely

Why it matters

  • This housing crisis represents a fundamental threat to economic stability and the American dream of homeownership, particularly for historically marginalized communities. The gap between household incomes and home prices has reached unprecedented levels, with median home prices now five times the median household income—far exceeding the traditionally affordable ratio of three times income. The racial homeownership gap remains persistently wide, perpetuating wealth inequality across generations, while climate change and rising insurance costs compound affordability challenges. With nearly three-quarters of a million people experiencing homelessness and potential federal budget cuts looming, inaction could trigger severe macroeconomic consequences and worsen the crisis for millions of families seeking stable, affordable housing.

What's next

  • Consideration of The Downpayment Toward Equity Act by Congress, which would provide $100 billion in direct assistance to first-time, first-generation homebuyers
  • Potential FY 2026 budget decisions that could cut housing agency funding in half
  • Possibility of a national economic downturn that could exacerbate housing challenges

Read full article from source: The San Diego Voice & Viewpoint

Harvard Report: Black Homeownership Gains Have Halted