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Celebrating Juneteenth: A Reflection on Freedom and the Ongoing Struggle for Black Home Ownership

Black home ownership


Every year on June 19th, we celebrate Juneteenth, commemorating the emancipation of enslaved African Americans in the United States. On this day in 1865, Union soldiers arrived in Galveston, Texas, and announced the end of the Civil War and the freedom of those who had been enslaved. This momentous occasion marked a significant turning point in American history, symbolizing hope, resilience, and the quest for equality. However, over 150 years later, the fight for true equity continues, particularly in homeownership for the Black community. The National Bankers Association explores how far we have come and how far we still need to go to reduce the racial wealth gap and create an even playing field for all Americans.


The Significance of Home Ownership

Homeownership has long been considered a cornerstone of the American Dream, representing financial stability, community investment, and generational wealth. However, for many Black Americans, this dream remains elusive due to systemic barriers and inequities that persist to this day. One of the most significant obstacles to Black home ownership has been the practice of redlining. In the 1930s, the Homeowners' Loan Corporation (HOLC) created maps that graded neighborhoods based on perceived lending risk. Predominantly Black neighborhoods were often marked in red, deeming them "hazardous" for mortgage lending. This led to decades of disinvestment, limited access to mortgages, and the devaluation of properties in these areas.


The Fair Housing Act of 1968 aimed to eliminate housing discrimination, but its enforcement has been inconsistent. Discriminatory practices, such as steering, predatory lending, and bias in mortgage approvals, have continued to affect Black homebuyers disproportionately.


The Wealth Gap and Generational Impact

The impact of these discriminatory practices is stark. According to a 2020 report by the Urban Institute, the homeownership rate for Black Americans was 44.1%, compared to 74.5% for White Americans. This gap has significant implications for wealth accumulation, as home equity is a primary source of wealth for many families. The inability to own homes not only limits financial stability for Black families but also restricts their ability to pass on wealth to future generations. This contributes to the persistent wealth gap between Black and White Americans, perpetuating a cycle of economic disadvantage. The median net worth of White households is approximately ten times greater than that of Black households, largely due to disparities in home ownership and property values.

The Role of Policy and Community Initiatives

Addressing these disparities requires concerted efforts at both the policy and community levels. Policymakers must enforce and strengthen fair housing laws, provide down payment assistance programs, and support initiatives that promote financial literacy and homebuyer education within the Black community. Community organizations and local governments should also play a crucial role in advocating for equitable development, creating affordable housing opportunities, and fostering environments where Black families can thrive.


The Vital Role of Minority Depository Institutions (MDIs)

Minority Depository Institutions have been instrumental in addressing these disparities and promoting home ownership within the Black community. MDIs are banks or credit unions where a majority of the ownership or board members are women or people of color. Recent Federal Reserve data illustrates that homeownership was a key driver of wealth for U.S. households during the pandemic, especially for minority households.


The National Bankers Association (NBA) just released proprietary research exploring the vital role that MDI mortgage lending played in increasing minority home ownership. Our analysis highlights the social impact of MDI mortgage lending, particularly as compared to lending from other types of financial institutions. Collectively, MDIs originated 164,000 mortgages, for a total of nearly $58billion in originations. And they originated a higher share of mortgages to minority borrowers and minority communities than did non-MDI lenders. In addition to providing mortgage lending, MDIs are partnering with developers to finance affordable housing, solar installation, and the revitalization of cities block by block.


Success Stories and Impact

While many MDIs have made significant strides in supporting Black home ownership and businesses to forge more vital communities, we highlight just a few examples below:



  • Carver Federal Savings Bank: Carver Federal Savings Bank offers a range of mortgage products and financial education initiatives to increase homeownership rates among Black Americans. It is at the forefront of providing financial services to faith-based institutions, nonprofit organizations, and foundations and is committed to meeting the banking needs of the communities in which it operates. Carver's commitment to the financial success of the community is evidenced by the fact that over 80% of its deposits are invested in the neighborhoods it serves. 


  • Mechanics & Farmers Bank (M&F): Serving communities in North Carolina, this institution provides tailored mortgage solutions and works closely with local organizations to promote affordable housing and home ownership among Black residents. M&F is taking the initiative to advance racial equity by investing in minority-owned businesses, leading the charge for a more inclusive recovery after the pandemic. M&F has publicly stated that it will use $420 million specifically to help reduce the racial wealth gap.


Conclusion: A Path Forward

Juneteenth is a celebration of freedom and a call to action for continued progress toward equity. Addressing the disparities in homeownership between Black and White Americans is essential for achieving true economic justice. By supporting and expanding the reach of Minority Depository Institutions, we can help bridge the gap and create opportunities for Black families to achieve the financial stability and generational wealth that home ownership provides.



For more information about the National Bankers Association, click here.


Download the NBA’s full research report here.

Other Sources:

  1. U.S. Census Bureau. "Quarterly Residential Vacancies and Homeownership, Fourth Quarter 2020."

  2. Urban Institute. "Homeownership Gap between Black and White Americans Has Remained Large for 50 Years."

  3. Federal Reserve. "Survey of Consumer Finances."

  4. Brookings Institution. "The Devaluation of Assets in Black Neighborhoods."




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