Opinion: Home prices could rise another 20% this year, but black families are struggling to take advantage
Combined, all of these factors mean that black families are at risk of falling further behind despite unprecedented growth in the housing market. And because home ownership is a major driver of generational wealth in America, their children and grandchildren are also likely to fall further behind.
But there are steps we can take to prevent the wealth gap from widening even further:
Build, build, build
Adding stocks of all types will be needed to significantly slow price growth and unlock home ownership for more Americans.
Reform the credit system
People with structural access to credit and a strong credit history are more likely to own a home.
Down payment assistance
Plus, first-time buyer savings accounts offer people a tax-free way to save for a down payment and closing costs, similar to tax-free college savings programs. Such accounts are now available in some states, but the federal government should take the lead in providing them everywhere.