Discussion Paper

Inequality in U.S. Homeownership Rates by Race and Ethnicity


Abstract: Homeownership has historically been an important means for Americans to accumulate wealth—in fact, at more than $15 trillion, housing equity accounts for 16 percent of total U.S. household wealth. Consequently, the U.S. homeownership cycle has triggered large swings in Americans’ net worth over the past twenty-five years. However, the nature of those swings has varied significantly by race and ethnicity, with different demographic groups tracing distinct trajectories through the housing boom, the foreclosure crisis, and the subsequent recovery. Here, we look into the dynamics underlying these divergences and explore some potential explanations.

Keywords: homeownership; race; household finance; consumer credit panel; diversity;

JEL Classification: D14;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2020-07-08

Number: 20200708a

Note: Heterogeneity Series III: Credit Market Outcomes