March 13, 2025 Story by: Editor
SEATTLE — While the share of first-time home buyers has declined nationwide, Black buyers have shown the strongest recovery. According to a recent Zillow® survey, 62% of Black home buyers purchased their first home in 2024, maintaining the same level as the previous year. By contrast, first-time buyers overall accounted for only 44% of the market, down from 50% in 2023.
After dropping significantly from 47% in 2019 to 35% in 2021, the share of Black first-time home buyers rebounded to 55% in 2022, reaching a record 63% in 2023—outpacing both other racial groups and the national trend.
“Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth,” said Zillow Senior Economist Orphe Divounguy. “While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits, and flexible lending options have helped increase access.”
The growing prevalence of remote work has also contributed to this trend, allowing some Black renters to pursue homeownership in more affordable regions. Zillow’s research indicates that Black renters are 29% more likely than others to be at a critical point where remote work could enable them to buy a home.
However, many buyers continue to face hurdles due to high housing costs and restrictive building regulations, which are especially burdensome for lower-income households, including Black and other minority groups. Limited housing supply in these areas drives up prices, and strict construction rules further reduce the number of affordable listings for Black buyers.
One major affordability measure is the ratio of housing costs to household income. Black households experience the greatest financial barriers, with a median income of $54,896—well below the $95,213 required to buy a typical U.S. home in 2024 without being cost-burdened (spending more than 30% of income on housing). Consequently, only 17.6% of available listings are affordable for the typical Black household, compared to 28.2% for Hispanic households, 37.9% for white households, and 56.8% for Asian households—highlighting the persistent disparities in homeownership.
Among the most affordable housing markets for Black households earning the median income in 2024, St. Louis leads with 30.3% of listings within reach, followed by Birmingham (29.5%) and Memphis (29.0%). Other affordable cities include Detroit (28.6%), Baltimore (25.8%), Pittsburgh (23.7%), Cleveland (22.8%), Indianapolis (22.0%), Atlanta (19.2%), and Oklahoma City (18.8%). Conversely, the least affordable markets for Black home buyers are concentrated on the West Coast, including major metropolitan areas in California and Seattle.
Despite the overall decline in affordable home listings for median earners, Black homeownership in 2024 increased at a higher rate than white homeownership compared to 2019. Only Hispanic households saw a greater percentage increase in homeownership.
While Black first-time home buyers continue to drive homeownership gains, barriers to entry remain. Zillow, a leader in real estate and technology, is addressing these challenges through innovation and advocacy.
The Zillow Home Loans’ BuyAbility℠ tool provides buyers with real-time, personalized insights into how interest rates affect their budget, estimating monthly payments and helping them find homes within their price range. Zillow’s down payment assistance tool connects buyers with financial resources through an easy questionnaire and a dedicated webpage. Beyond technology, Zillow supports policies that expand credit access, increase housing supply, and enhance affordability.
Source: Zillow
