Redfin data shows Gen Z and millennial gaps widening, despite policy efforts
A new Redfin analysis suggests that young Black Americans are moving further away from homeownership even as their white peers made modest gains, deepening a racial gap that mortgage leaders long pledged to narrow.
The real estate giant found that 14.2% of Black Gen Zers owned their home, compared with 31.6% of white Gen Zers. Among millennials, 32% of Black households owned, versus 66.6% of white millennials – roughly twice the rate.
The firm’s earlier work also showed that overall Black homeownership slipped to 43.9% in mid‑2025, while the white rate hovered around 74%.
“Black millennials and Gen Zers are bearing the brunt of the racial homeownership gap because since they have reached homebuying age, the country has faced significant financial challenges and a major housing supply shortage,” Redfin chief economist Daryl Fairweather said.
“Young Black Americans started out behind their white counterparts because they’re less likely to have property and money passed down from their families because of historical discrimination in housing and employment.”
Fairweather added that Black unemployment spiked to nearly 17% during both the Great Recession and the pandemic, compared with 9% and 14% for white Americans, worsening the gap in savings and credit profiles for today’s young buyers.
Structural gaps, not just a tough rate cycle
While affordability has been a challenge for all first‑time buyers, the report points to longstanding disparities: Black workers typically earn less, have lower median wealth and face higher unemployment than white workers, making it harder to save for down payments or qualify for mortgages.
Redfin also noted that Black homebuyers are roughly twice as likely to see their mortgage applications rejected as white borrowers and are less likely to receive family cash gifts for down payments.
Industry voices warned for years that these patterns represent a reversal of progress.
“There’s this assumption that humanity moves forward all the time, that we’re on an inevitable march to progress by any indicator,” Shadi Bushra of Today’s Homeowner told Mortgage Professional America in an earlier interview.
“But the truth is that we falter, we do take steps backwards, and this is a glaring example of that. Not only are we not doing better than previous generations, but somehow managing to do worse.”
Programs emerge, but impact on young Black buyers lags
Trade groups and lenders launched targeted efforts. The Mortgage Bankers Association’s CONVERGENCE initiatives in cities such as Philadelphia, Memphis and Columbus are designed to bring together a local network of housing leaders, non‑profits and other stakeholders to expand sustainable homeownership for communities of color.
Banks including Bank of America rolled out special‑purpose credit programs with down‑payment assistance and alternative credit underwriting to reach underserved borrowers.
Redfin argued that similar tools – from first‑time buyer support to expanded access to fair, affordable credit – would be critical if Black Gen Z and millennial households are to get their foot in the door.
For originators and servicers, without intentional strategies to reach young Black buyers, the next generation’s wealth gap risks becoming even harder to close than the last.
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