Nareb's 2023 State of Housing in Black America Report finds shortage of housing inventory adds to systemic barriers limiting black homeownership

Major barriers impede homeownership among African Americans, despite record-low Black unemployment and a higher labor force participation rate than Whites, according to the 2023 State of Housing in Black America (SHIBA) report released by the National Association of Real Estate Brokers (NAREB).

The SHIBA report, released at NAREB’s Black Wealth Summit at Miles College near Birmingham, AL, found that an inadequate supply of new homes significantly contributes to the growing housing crisis, particularly for potential Black buyers. Housing demand outpaces new home construction by roughly 100,000 units annually, creating the largest housing shortfall in nearly half a century. The lack of housing stock contributes to sustained high prices despite high-interest rates. These are factors negatively impacting Black homeownership.

“Housing inventories must be increased across the country,” said Dr. Courtney Johnson Rose, the NAREB president. “Families can’t buy homes if they aren’t available or if the market is so tight that prices are artificially high. Clearly, there is a connection between the lack of inventory and the inability to increase Black homeownership substantially. It’s time for key components of the housing finance industry, such as Fannie Mae and Freddie Mac, to facilitate new home construction or even rehabilitation of existing homes.”

Citing the most recent information available, including from the 2022 Home Mortgage Disclosure Act, the SHIBA report noted the Black homeownership rate was 45% in 2022, nearly 30% lower than White households, with a wider gap than 50 years ago. SHIBA also determined that the Black-White wealth gap is so expansive that the 400 wealthiest Americans control the same amount of wealth as the 48 million Blacks living in the United States.