Monique Moseley picked up the keys to her first house on Oct. 21, fulfilling her dream of someday owning a home. The mother of 12-year-old Elijah purchased a three-bedroom stucco in North Minneapolis.
“I was so excited—and my son is happy to have his own space again,” she says. “While in the process of buying, we stayed with family.”
Moseley hasn’t just purchased a home—she’s taken a giant leap forward in lifetime economic security. Homeownership is a vital factor in the accumulation of wealth for Black Americans, just as the lack of homeownership is a significant driver in the racial wealth gap.
The Brooking Institution, a nonprofit public policy organization, released a report in January titled “Black wealth is increasing, but so is the racial wealth gap.” Authors Andre Perry, Hannah Stephens, and Manann Donoghoe arrived at that conclusion after looking at data collected by the Federal Reserve between 2019 and 2022.
Among their findings: Total wealth increased for all racial and ethnic groups over the study period, with Black wealth growing, on average, from $27,970 to $44,890. Yet, Black Americans overwhelmingly lagged behind other racial and ethnic groups. Latino households on average had $62,000 in 2022, white households $285,000, and Asian American households $536,000.
“The growing disparity means that in 2022, for every $100 in wealth held by white households, Black households held only $15,” the authors note.
Since the first Survey of Consumer Finances in 1983, the smallest difference between Black and white family wealth was $123,910 in 1992—and has steadily climbed since, peaking in 2022. Housing equity is a top factor driving this trend.
Nationally, only 44% of Black individuals own a home, compared to nearly 73% of white individuals—a vestige of discriminatory housing practices such as redlining and blockbusting. In Minnesota, the disparity is even greater.
In the latest Tracey’s Keepin’ It Real podcast, MSR Publisher and CEO Tracey Williams-Dillard takes a deep dive into Homebuying Advising with guests Henry Rucker of PPL and LaShelle Smith, homeownership advisor with PGR in South Minneapolis. Click here to watch the podcast.
Data from the Prosperity Now Scorecard—a comprehensive resource featuring data on family financial health, racial economic inequality, and policy—found in a 2015-2020 study that 77.5% of white households in Minnesota own their homes, compared to just 30.5% of Black households. That disparity is even more pronounced in the Twin Cities metro area.
The Minnesota Homeownership Center has assembled a network of 30 community-based organizations to help residents achieve sustainable homeownership. Each group offers free sessions with homeownership advisors to:
- evaluate mortgage readiness;
- determine homebuyers’ purchasing power;
- identify applicable down payment assistance;
- prepare consumers for successful closings.
“When people go to the doctor they get their height, their weight,” says Henry Rucker, associate director of homeownership and financial coaching with Project for Pride in Living (PPL). “That’s what we do for homeownership. It’s a chance for someone to get a real look at their finances without being judged. Knowledge is power.”
Homeownership advisors offer expert, unbiased education and advice to help Minnesotans navigate the complex home-buying process. They are certified by the U.S. Department of Housing and Urban Development (HUD), and their services are paid for through a combination of federal, state and local grants, allowing the network to provide assistance for free.
Before purchasing her home, Moseley met several times with a homeownership advisor at PPL, who helped her find programs that defrayed downpayment costs. “I learned a lot of information about the home-buying process, questions to ask, different mortgage rates, different types of rates and what they mean,” Moseley says of the program.
“I thought it was very valuable. And because I attended the class, I met my realtor Denise. She was amazing. I think I would have given up if I didn’t have her. She was very supportive of my decisions and considered my situation. She wasn’t just trying to stick me in a house.”
Although Moseley met her goal of homeownership with the help of PPL, not all participants end up with a new address.
“If you go through the process, get educated, and decide buying a home is not for you, that’s a success as well,” says Bill Gray, stakeholder relations director with the Minnesota Homeownership Center. “The advisors don’t have a financial stake in outcomes; they’re here only to help.”
Cynthia Moothart welcomes reader responses to cmoothart@spokesman-recorder.com.