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Affordable Housing , Community Development , Housing Policy Briefs , Reports and Publications

CFED’s Recommendation for Addressing the Racial Wealth Disparity in Homeownership

4 April 2017
Corporation for Enterprise Development (CFED)

The Corporation for Enterprise Development (CFED) recently published a report titled “A Downpayment on the Divide: Steps to Ease Racial Inequality in Homeownership.” The report analyzes the racial disparities in the rates of homeownership among Whites, Blacks, and Latinos. 

The report describes the large wealth disparity between the median net worth of White households and the median net worth of both Black and Latino households. CFED reports that the median net worth of White households is $110,637, whereas it is $7,113 for Black households and $8,985 for Latino households. The report sites homeownership rates and property values as a key contributing factor to this racial wealth divide.  Overwhelmingly, White households have a much higher homeownership rate and property value than both Black and Latino households. 

CFED provides a number of federal policy recommendations to begin to address the discriminatory practices of the past. These proposals include preserving important federal funding programs such as Fannie Mac and Freddie Mac, that help low- to moderate-income households afford housing, promoting the use of alternative credit scoring methods to ensure the system is more inclusive of low- to moderate-income households, and protecting and enforcing anti-discrimination regulations, such as the Fair Housing Act. 

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