SEATTLE, Feb. 20,
2025 /PRNewswire/ -- While recent first-time home
buyer rates have declined nationally, Black buyers have experienced
the strongest rebound. A recent Zillow® survey found that 62% of
Black home buyers purchased their first home in 2024, holding
steady from the previous year. In comparison, overall, first-time
buyers made up just 44% of the market, down from 50% in 2023.
After a sharp drop from 47% in 2019 to 35% in 2021, the share of
Black first-time buyers rebounded to 55% in 2022 and hit a record
63% in 2023 — outpacing 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 rise of remote work has also expanded opportunities, giving
some Black renters more flexibility to pursue homeownership in more
affordable areas. Zillow research shows that Black renters are 29%
more likely than other renters to be at a tipping point where
remote work could make homeownership achievable.
Still, high housing costs and strict building regulations in
many metropolitan markets limit opportunities for many buyers
across the country, disproportionately impacting lower-income
households — particularly Black households and other households of
color. These areas often face supply constraints that drive up
prices, and in markets with stricter building regulations, even
fewer listings are affordable for the typical Black household.
A key measure of housing affordability is the monthly housing
burden compared to household income. Black households face the
steepest barriers, earning a median income of $54,896 — far below the $95,213 needed to buy the typical U.S. home in
2024 without being cost-burdened (spending more than 30% of income
on housing). As a result, just 17.6% of listings are affordable for
the typical Black household, compared to 28.2% for Hispanic, 37.9%
for white, and 56.8% for Asian households, underscoring persistent
gaps in homeownership.
St. Louis is the most
affordable1 housing market for typical Black
households — those households earning the median income — with
30.3% of listings within reach in 2024. Birmingham follows at 29.5%, and Memphis at 29.0%. Other affordable markets
include Detroit (28.6%),
Baltimore (25.8%), Pittsburgh (23.7%), Cleveland (22.8%), Indianapolis (22.0%), Atlanta (19.2%) and Oklahoma City (18.8%). In contrast, the least
affordable markets for potential Black home buyers are concentrated
on the West Coast, including major California metros and Seattle.
Despite a steeper decline in the share of home listings that
were affordable to the median earner, Black homeownership increased
more than white homeownership in 2024 compared to 2019. Only
Hispanic households saw a higher percentage increase in
homeownership.
Black first-time home buyers are driving homeownership gains,
but barriers remain. Zillow, a leader in real estate and
technology, is helping to tackle some of these challenges through
innovation and advocacy. Zillow Home Loans' BuyAbility℠ tool gives
buyers real-time, personalized insights on how interest rates
impact their budget, showing estimated monthly payments and helping
them find homes on Zillow that are within their price range.
Zillow's down payment assistance tool connects buyers with
financial resources through a simple questionnaire and dedicated
page. Beyond technology, Zillow advocates for policies that
expand credit access, boost housing supply and improve
affordability.
|
Metro
|
Typical Home
Value (Based
on Zillow
Home Value
Index (ZHVI),
December
2024 )
|
Typical
Monthly
Mortgage
Payment
|
Household
Income
Needed to
Afford
Monthly
Mortgage
on a
Typical
Home
|
Share of
Affordable
Listings for
Black
Households
(%)
|
Share of
Affordable
Listings for
White
Households
(%)
|
Median
household
income
overall
(by metro)
|
Median
Household
Income
(Black
Households)
|
Median
Household
Income
(White
Households)
|
|
United
States
|
$354,711
|
$2,380
|
$95,213
|
17.6 %
|
37.9 %
|
$75,301
|
$54,896
|
$85,970
|
|
New York, NY
|
$674,000
|
$4,825
|
$192,987
|
4.5 %
|
19.9 %
|
$79,445
|
$67,844
|
$78,305
|
|
Los Angeles,
CA
|
$950,210
|
$5,989
|
$239,554
|
0.4 %
|
5.0 %
|
$77,684
|
$64,322
|
$78,823
|
|
Chicago, IL
|
$321,071
|
$2,423
|
$96,935
|
11.4 %
|
51.1 %
|
$74,576
|
$51,789
|
$111,865
|
|
Dallas, TX
|
$369,035
|
$2,670
|
$106,805
|
7.2 %
|
35.5 %
|
$68,092
|
$64,219
|
$82,655
|
|
Houston, TX
|
$305,539
|
$2,128
|
$85,120
|
14.3 %
|
52.4 %
|
$79,237
|
$60,055
|
$88,042
|
|
Washington,
DC
|
$566,740
|
$3,742
|
$149,681
|
15.3 %
|
50.5 %
|
$71,469
|
$90,113
|
$87,213
|
|
Philadelphia,
PA
|
$360,070
|
$2,511
|
$100,434
|
15.2 %
|
53.8 %
|
$94,463
|
$54,482
|
$83,898
|
|
Miami, FL
|
$483,889
|
$3,448
|
$137,902
|
12.4 %
|
26.4 %
|
$70,899
|
$61,111
|
$78,150
|
|
Atlanta, GA
|
$377,128
|
$2,602
|
$104,087
|
19.2 %
|
48.2 %
|
$80,791
|
$72,194
|
$79,237
|
|
Boston, MA
|
$687,322
|
$4,570
|
$182,814
|
3.6 %
|
18.4 %
|
$98,192
|
$77,684
|
$103,578
|
|
Phoenix, AZ
|
$450,312
|
$2,760
|
$110,411
|
3.8 %
|
23.6 %
|
$71,345
|
$61,111
|
$95,292
|
|
San Francisco,
CA
|
$1,129,853
|
$7,220
|
$288,815
|
0.9 %
|
14.6 %
|
$88,767
|
$72,505
|
$98,814
|
|
Riverside,
CA
|
$582,400
|
$3,768
|
$150,730
|
5.8 %
|
12.5 %
|
$66,539
|
$74,887
|
$100,782
|
|
Detroit, MI
|
$246,782
|
$1,735
|
$69,412
|
28.6 %
|
59.6 %
|
$93,220
|
$47,646
|
$78,305
|
|
Seattle, WA
|
$732,246
|
$4,762
|
$190,462
|
2.2 %
|
13.8 %
|
$71,883
|
$77,684
|
$88,042
|
|
Minneapolis,
MN
|
$364,854
|
$2,581
|
$103,238
|
9.7 %
|
47.8 %
|
$88,042
|
$61,111
|
$101,507
|
|
San Diego,
CA
|
$932,386
|
$5,864
|
$234,569
|
0.6 %
|
6.0 %
|
$80,170
|
$75,198
|
$148,117
|
|
Tampa, FL
|
$367,868
|
$2,536
|
$101,445
|
12.3 %
|
24.2 %
|
$124,294
|
$61,111
|
$103,578
|
|
Denver, CO
|
$578,402
|
$3,682
|
$147,269
|
3.9 %
|
24.0 %
|
$85,970
|
$64,219
|
$100,802
|
|
Baltimore,
MD
|
$383,897
|
$2,562
|
$102,481
|
25.8 %
|
59.6 %
|
$80,791
|
$67,326
|
$82,863
|
|
St. Louis,
MO
|
$248,944
|
$1,794
|
$71,756
|
30.3 %
|
61.5 %
|
$79,237
|
$48,889
|
$88,249
|
|
Orlando, FL
|
$389,796
|
$2,654
|
$106,159
|
12.7 %
|
25.2 %
|
$79,755
|
$66,290
|
$99,435
|
|
Charlotte,
NC
|
$376,608
|
$2,406
|
$96,252
|
9.8 %
|
41.1 %
|
$78,927
|
$56,968
|
$84,934
|
|
San Antonio,
TX
|
$279,985
|
$1,935
|
$77,384
|
17.1 %
|
46.4 %
|
$73,541
|
$59,040
|
$76,648
|
|
Portland, OR
|
$540,758
|
$3,578
|
$143,126
|
3.2 %
|
14.1 %
|
$88,042
|
$62,147
|
$87,627
|
|
Sacramento,
CA
|
$574,042
|
$3,739
|
$149,574
|
2.5 %
|
12.5 %
|
$97,156
|
$70,640
|
$92,703
|
|
Pittsburgh,
PA
|
$209,684
|
$1,503
|
$60,103
|
23.7 %
|
60.1 %
|
$81,620
|
$41,431
|
$106,893
|
|
Cincinnati,
OH
|
$281,154
|
$1,842
|
$73,686
|
17.8 %
|
59.0 %
|
$63,493
|
$48,319
|
$83,898
|
|
Austin, TX
|
$442,669
|
$3,034
|
$121,370
|
6.1 %
|
30.3 %
|
$79,507
|
$74,576
|
$100,471
|
|
Las Vegas,
NV
|
$428,628
|
$2,653
|
$106,107
|
7.0 %
|
20.5 %
|
$99,435
|
$58,004
|
$85,970
|
|
Kansas City,
MO
|
$298,143
|
$2,102
|
$84,077
|
17.8 %
|
52.0 %
|
$88,042
|
$51,789
|
$104,821
|
|
Columbus, OH
|
$310,104
|
$2,206
|
$88,221
|
12.8 %
|
47.2 %
|
$73,541
|
$51,789
|
$92,703
|
|
Indianapolis,
IN
|
$272,544
|
$1,846
|
$73,842
|
22.0 %
|
59.1 %
|
$77,684
|
$54,171
|
$90,735
|
|
Cleveland,
OH
|
$225,119
|
$1,654
|
$66,159
|
22.8 %
|
59.9 %
|
$78,720
|
$41,431
|
$85,245
|
|
San Jose, CA
|
$1,607,357
|
$10,002
|
$400,078
|
0.1 %
|
5.9 %
|
$87,109
|
$90,113
|
$77,684
|
|
Nashville,
TN
|
$440,417
|
$2,793
|
$111,709
|
3.4 %
|
26.9 %
|
$104,614
|
$58,025
|
$112,900
|
|
Virginia Beach,
VA
|
$347,993
|
$2,361
|
$94,454
|
8.5 %
|
53.6 %
|
$84,209
|
$53,861
|
$91,563
|
|
Providence,
RI
|
$477,077
|
$3,246
|
$129,856
|
4.7 %
|
16.7 %
|
$76,648
|
$61,733
|
$82,867
|
|
Jacksonville,
FL
|
$348,956
|
$2,495
|
$99,794
|
11.4 %
|
34.1 %
|
$94,774
|
$55,932
|
$116,318
|
|
Milwaukee,
WI
|
$341,543
|
$2,694
|
$107,775
|
10.5 %
|
41.8 %
|
$113,936
|
$43,710
|
$123,258
|
|
Oklahoma City,
OK
|
$229,767
|
$1,681
|
$67,227
|
18.8 %
|
46.1 %
|
$113,522
|
$51,789
|
$99,435
|
|
Raleigh, NC
|
$436,744
|
$2,864
|
$114,573
|
4.9 %
|
41.0 %
|
$96,846
|
$65,254
|
$91,149
|
|
Memphis, TN
|
$232,491
|
$1,633
|
$65,337
|
29.0 %
|
59.5 %
|
$84,934
|
$50,753
|
$148,117
|
|
Richmond, VA
|
$368,933
|
$2,429
|
$97,178
|
13.8 %
|
52.4 %
|
$96,535
|
$62,665
|
$98,296
|
|
Louisville,
KY
|
$255,717
|
$1,707
|
$68,298
|
14.1 %
|
55.6 %
|
$129,473
|
$43,089
|
$113,936
|
|
New Orleans,
LA
|
$234,078
|
$1,684
|
$67,370
|
9.1 %
|
47.4 %
|
$89,077
|
$41,431
|
$102,646
|
|
Salt Lake City,
UT
|
$541,465
|
$3,373
|
$134,936
|
16.7 %
|
17.9 %
|
$96,949
|
$98,399
|
$93,220
|
|
Hartford, CT
|
$360,289
|
$2,663
|
$106,511
|
17.4 %
|
46.7 %
|
$157,025
|
$70,433
|
$113,833
|
|
Buffalo, NY
|
$254,148
|
$2,023
|
$80,926
|
13.4 %
|
52.0 %
|
$104,511
|
$41,431
|
$155,367
|
|
Birmingham,
AL
|
$246,545
|
$1,610
|
$64,405
|
29.5 %
|
54.7 %
|
$93,220
|
$52,825
|
$109,793
|
|
|
*Table ordered by
market size
|
|
About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate
to make home a reality for more and more people. As the most
visited real estate website in the United
States, Zillow and its affiliates help people find and get
the home they want by connecting them with digital solutions,
dedicated partners and agents, and easier buying, selling,
financing, and renting experiences.
Zillow Group's affiliates, subsidiaries and brands include
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Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠,
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All marks herein are owned by MFTB Holdco, Inc., a Zillow
affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a
Zillow affiliate.
1 Affordability is based on total monthly costs
— taxes, insurance, and maintenance — with a 20% down payment and
mortgage costs under 30% of income, as of 2024.
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SOURCE Zillow
