by Mitti Hicks
April 9, 2025
Black homeownershp rates have increased, but challenges persist
Research from the Urban Institute found that while Black homeownership rates increased slightly during the pandemic, increasing by two percentage points between 2019 and 2021 (from 42.2 to 44.2 percent), higher interest rates threaten to further widen racial homeownership gaps.
Researchers found that the Black-white homeownership gap is wider now than it was when segregation was legal.
Interest rates are just part of the problem. Higher mortgage denial rates for Black households compared to white households and lower average credit scores are also contributing factors.
“We recognize that one of the challenges we face as a community to become homeowners is our credit,” Teri Williams, president and chief operating officer of the largest Black-owned bank, OneUnited, tells Black Cosmopolitan. “We have these great programs, such as first-time homebuyer programs, but we found ourselves having to decline applicants because of their credit.”
To mitigate some of these barriers and increase Black homeownership rates, OneUnited is partnering with Esusu, a Black-owned fintech company.
Wemimo Abbey and Samir Goel founded Esusu in 2018 to dismantle barriers to housing for working families. Esusu partners with property management companies to collect and report on-time rental payment data to the three major credit bureaus, Experian, Equifax, and TransUnion, helping renters build credit.
“Anyone that pays rent should consider Esusu,” says Williams. “They have also collaborated with Fannie Mae and Freddie Mac, who count rent payments towards mortgage approvals.”
On average, Esusu members experience a 40-point jump in credit score, which could make all the difference in obtaining a home loan. According to Williams, Esusu only reports on-time payments, so if renters miss a payment, Esusu does not report it.
Interested renters must have a bank account so Esusu can report on-time rent payments to credit bureaus. Williams adds that OneUnited offers second-chance checking accounts, so people with ChexSystems records can still open an account.
“I say this all the time: Even if you have to buy a hut, you should buy a home. It may not be your dream home, but what it does is it gets you into home ownership benefit,” says Williams. “It allows you to start to build home equity, which is the number one way people in America build wealth.”
For more information on the partnership, visit OneUnited’s website.
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