Feb 16, 2025 Story by: Editor
Black Americans are disproportionately affected by a national housing crisis that limits access to quality, affordable housing, according to a study by the McKinsey Institute for Black Economic Mobility. The report highlights that Black communities often lack access to essential goods and services provided by major companies, further deepening economic disparities.
Housing plays a crucial role in shaping opportunities for employment, education, and access to public services. However, Black Americans bear an outsized burden in the housing market. Nearly 60 percent of Black renters and 30 percent of Black homeowners are either moderately or severely cost-burdened—figures that exceed the national average. This crisis stems from historical housing discrimination and ongoing supply, demand, and geographic imbalances, which continue to pose significant challenges for Black families striving for economic progress.
A severe shortage of available housing exacerbates the issue. In 2023, the U.S. had 8.2 million fewer housing units than required to meet demand, and this gap is projected to rise to 9.6 million by 2035 without substantial intervention. Addressing this shortfall, while requiring strategic investments, could generate as many as 1.7 million jobs and contribute nearly $2 trillion to the nation’s GDP by 2035. Given that Black Americans are disproportionately affected by housing instability, they stand to gain significantly from such investments.
McKinsey’s analysis identifies five key strategies for tackling this crisis: unlocking land through innovative incentives and partnerships, enhancing programs to attract private investment, expanding off-site home construction, reinvesting in public housing and shared-equity models, and improving the housing choice voucher system. Together, these initiatives could help develop 2.3 million housing units over the next decade, including 700,000 units specifically benefiting Black households.
Historically, homeownership has been a key pathway to economic opportunity in the U.S. However, rising housing costs have turned it into a barrier for many families, particularly in Black communities. The ongoing surge in rental and homeownership expenses continues to push vulnerable households further into financial hardship, widening the economic divide. Source: McKinsey & Company
