Black First-Time Home Buyers See Strongest Rebound As National Rates Decline | Living In Phoenix Arizona
BLACK FIRST-TIME HOME BUYERS SEE STRONGEST REBOUND AS NATIONAL RATES DECLINE
LIVING IN PHOENIX, ARIZONA
Black First-Time Home Buyers See Strongest Rebound As National Rates Decline
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 |
– more at azbigmedia.com
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