SEATTLE, WA — Black first-time home buyers are leading the market recovery, with 62% of Black buyers purchasing their first home in 2024, according to a new Zillow® survey. This record percentage holds steady from 2023, significantly outpacing the national trend, where first-time buyers represented just 44% of the market last year, down from 50% in 2023.
The share of Black first-time buyers has rebounded sharply in recent years. After dropping from 47% in 2019 to a low of 35% in 2021, the percentage of Black first-time buyers climbed to 55% in 2022 and reached an unprecedented 63% in 2023, outperforming other racial groups.
“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.”
Affordability Challenges Create Significant Barriers
Despite these gains, Black households face persistent affordability barriers. The typical Black household earns a median income of $54,896—far below the $95,213 required to purchase the average home in 2024 without exceeding 30% of income on housing costs. Consequently, only 17.6% of housing listings were affordable for a typical Black household last year. This compares to 28.2% for Hispanic households, 37.9% for white households, and 56.8% for Asian households, according to Zillow’s data.
Market conditions vary significantly by region, with St. Louis ranked as the most affordable housing market for typical Black households, where 30.3% of listings are within reach. Birmingham (29.5%) and Memphis (29%) rounded out the top three. Other cities like Detroit, Baltimore, and Pittsburgh also offer relatively greater affordability.
Conversely, affordability gaps are stark in markets with high property values and restrictive building regulations, such as those on the West Coast. Cities like Seattle, Los Angeles, and San Francisco were among the least affordable for Black households.
Opportunities Through Remote Work
The rise of remote work has been a game changer for many Black renters considering homeownership. Zillow’s research found that Black renters are 29% more likely than others to take advantage of remote work flexibility, enabling them to move to more affordable areas and realize their homeownership goals. However, housing affordability challenges and systemic barriers continue to impose hurdles for many aspiring homeowners.
Still, Black homeownership rates have grown faster than white homeownership rates since 2019, driven in part by the surge of Black first-time buyers.
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