© 2023 Fannie Mae

The Black Housing Journey
2

Fannie Mae has taken a problem-solving approach in order to provide solutions to the housing industry designed to knock down barriers 

to homeownership and housing stability for people historically underserved because of race, ethnicity, or geography. We have developed 

the Black Housing Journey as our first use case to identify the distinct obstacles that may affect Black renters’ and homeowners’ 

journeys to stable housing and sustainable homeownership.

Approach and position

• As Fannie Mae continues to advance equity in housing, we will leverage the Black Housing Journey to develop solutions that address 

the identified barriers to close the Black–white homeownership gap and remove obstacles to affordable, stable rental housing.

• The obstacles in this review are not mutually exclusive, and Black consumers often encounter multiple obstacles across various 

stages of the Black Housing Journey. The cumulative impact limits Black consumers’ housing options and ability to build wealth.

• Urban Institute has cited: “From 2020 to 2030, we expect 8.5 million new households will be formed, with only 455,000 of these being 

white. We forecast 1.7 million net new Black households, 4.1 million net new Latino households, and 2.3 million net new Asian and 

other households from 2020 to 2030. Between 2030 and 2040, we expect 7.6 million net new households: a 1.1 million net decrease in 

white households, a 1.6 million net increase in Black households, a 4.5 million net increase in Latino households, and a 2.6 million net 

increase in other households.” Understanding the changing make-up of households requires an increased understanding and 

commitment to resolve the obstacles faced.

• These findings are based on literature review and primary research on the consumer population and informed by industry 

engagements. As Fannie Mae continues to advance equity in housing, we will include additional Consumer Housing Journeys for 

obstacles faced by historically underserved groups, such as Latino people.

How to use this document

• Due to the multiple sources with different methodologies and approaches to research, we suggest reviewing the full body of 

research and references detailed at the end of this document.

• Leverage this consumer-centric framework to develop actions to address the key obstacles faced by Black consumers. Engage with 

housing market participants to share and include your data/research in this Black Housing Journey framework.

Understanding the Consumer Housing Journey
3

CONSUMER FOCUSED

Experiences and early education 

can inform the path to quality 

rental housing and 

homeownership.

Transitioning to a new 

home, for whatever 

reason, can present its 

own challenges and 

opportunities.

Consumers can face multiple hurdles when they 

shop for, buy, rent, or finance a home.

Housing stability means 

navigating maintenance and 

upkeep, as well as the ability to 

withstand disruptions and 

crises.

OR

BLACK HOUSING JOURNEY The Consumer Housing Journey framework 

is used to highlight obstacles that Black 

consumers face across their housing journey
4

Non-Latino 

White, 

73%

Latino,

51%

Non-Latino 

Black, 

44%

0%

20%

40%

60%

80%

100%

Homeownership rate 2021

BACKGROUND

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2021.

U.S. homeownership rate by race (2021) Homeownership rate by household income (2021)

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2021.

AAPI: Asian Americans and Pacific Islanders.

29-point 

gap 22-point 

gap

79.7

68.1

57.4

50.0

37.6

79.3

67.6

52.7

38.9

31.9

79.2

67.8

51.2

35.0

26.4

89.0

83.6

74.2

64.1

52.3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$150,000 or more

$100,000 - $150,000

$50,000 - $100,000

$25,000 - $50,000

Less than $25,000

Non-Latino White Non-Latino Black Latino Non-Latino AAPI

BLACK CONSUMER FOCUSED HOUSING JOURNEY The racial homeownership gap

Many consumers encounter obstacles throughout their housing journey, especially those from historically underserved groups. Across our 

country, communities that suffered from a discriminatory past continue to suffer a persistently diminished present, with housing at the crux of 

the divide. 44% of Black consumers own homes compared to 73% of non-Latino white consumers — a gap of 29 percentage points, which 

translates to roughly 4.4 million Black households.
5

69%

73%

44% 44%

42%

51%

52%

63%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

1990 2000 2010 2015 2016 2017 2018 2019 2021

Non-Latino White Non-Latino Black Latino Non-Latino AAPI

BLACK HOUSING JOURNEY BACKGROUND

Source: Fannie Mae computations from IPUMS microdata for Decennial Census, 1990 – 2010; American Community Survey PUMS 1-year estimates, 2015 – 2019, 2021. 2020 datapoints are omitted due to quality concerns. 

AAPI: Asian Americans and Pacific Islanders.

4.4 million Black renter 

households would need to 

convert to homeownership 

in order to close the gap vs. 

non-Latino white 

households.

Racial homeownership trends

Black homeownership rates rose during the pandemic after a consistent decline from 46% since the early 2000s. To close the homeownership 

rate gap, ~4.4 million Black renter households will need to become homeowners — representing roughly half of Black renter households in 2021.
6

76% of renters intend to buy at some 

point in the future

BLACK HOUSING JOURNEY

Among renters, by demographic group:

Q3 2022

71%

86%

74%

94%

White (W)

Black (B)

Latino (L)

Asian*(A)

*Caution: low n-size (Asian renters: n=94) 

Source: Fannie Mae Q3 2022 National Housing Survey

% Buy at some point

Source: Fannie Mae Q3 2022 National Housing Survey

% Buy at some point

W/B/L/A: Letter next to data label denotes the number is significantly higher than the segment that 

the letter represents at the 95% confidence level

W

86% of Black renters intend to own 

a home one day

The percentage of renters who intend to own a home is relatively consistent across demographic groups, with those from historically underserved 

groups being the highest. 86% of Black renters desire to own a home one day.
7

42%

53%

57%

44%

51%

56% 58%

44%

0%

10%

20%

30%

40%

50%

60%

70%

Non-Latino White

Latino

Non-Latino Black

Non-Latino AAPI

Non-Latino White

Latino

Non-Latino Black

Non-Latino AAPI

Single-Family Burdened Multifamily Burdened

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2021. 

AAPI: Asian Americans and Pacific Islanders.

*Households are housing cost-burdened if they spend more than 30% of their income on monthly housing costs. 

For renters, monthly housing costs are rent + utilities.

Share of renters who are cost-burdened*

Rising home prices, coupled with income inequality has placed affordable rental housing even further out of reach and disproportionately 

harms Black and Latino consumers, who are more likely to be rent cost-burdened.* Over half of Black consumers are renting, and about half are 

in single-family rentals (1 – 4 units). Resolving the issues of housing affordability requires focused action to create affordable housing, preserve 

existing rental stock, and establish tenant protections.

BLACK HOUSING JOURNEY

17%

14% 14%

17%

-10%

-5%

0%

5%

10%

15%

20%

2005 2007 2009 2011 2013 2015 2017 2019 2021

Median Renter Household Income Median Gross Rent

Growth in median renter income and gross rent 

(percent change from 2005)

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2015 – 2019, 2021. 

2020 datapoints are omitted due to quality concerns. Gross rent is rent plus utilities.

Rising rental burdens
8

BLACK HOUSING JOURNEY

West

10%

Northeast 

17%

South

56%

Midwest

17%

Source: Fannie Mae computations from American Community Survey 

PUMS 1-year estimates, 2021. 

Black population includes Black regardless of ethnicity and in 

combination with other races. 

Census 

region

Black homeownership 

rate

Northeast 38%

Midwest 39%

South 48%

West 37%

Distribution of Black population by census region

Note: 3 of our 6 Special Purpose Credit Program markets are located in the South, 1 market is in the Northeast and the remaining 2 markets are in the Midwest. 

Geographic distribution of Black consumers

A history of violence, extraction of capital, disinvestments, and where financial centers were intentionally destroyed culminated in America’s 

Great Migration from 1910 to 1970, which was the large-scale migration of Black consumers across the U.S. Nearly 90% of Black Americans lived 

in the South in 1910 but, by 1970, less than half did. We are seeing another domestic migration of Black consumers to the South, fueled by 

increased affordability and supported by immigration of Black consumers from Latin America and Africa.
9

BLACK HOUSING JOURNEY BACKGROUND

39%

20%

26%

56%

0%

20%

40%

60%

80%

Non-Latino White Latino Non-Latino Black Non-Latino AAPI

% with college degree or higher

4%

32%

10%

64%

0%

20%

40%

60%

80%

Non-Latino White Latino Non-Latino Black Non-Latino AAPI

% immigrant (persons foreign-born)

2.3

3.1

2.4

2.9

0.0

1.0

2.0

3.0

Non-Latino White Latino Non-Latino Black Non-Latino AAPI

Average number of people in household

$65,153 

$56,780 

$45,493 

$89,046 

 $-

 $20,000

 $40,000

 $60,000

 $80,000

 $100,000

Non-Latino White Latino Non-Latino Black Non-Latino AAPI

Average renter household income

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2021. 

Universe for educational attainment is population 25 years and older. AAPI: Asian Americans and Pacific Islanders.

There are diverse and unique demographic characteristics, which must be considered in the journey to homeownership for Black consumers. 

Demographic attributes
10

Latin 

America 

54%

Africa

43%

Other

3%

Source: Fannie Mae computations from American Community Survey PUMS 1-year estimates, 2005-

2019 and 2021. 2020 datapoints are omitted due to quality concerns. Black multiracial includes Black 

in combination with other race(s).

* 2021 number is not directly comparable to previous estimates. Since 2020, the Census Bureau 

changed its race questions and processed more write-in answers.

U.S. Black* population Black immigrant population Country of origin of 4.7M 

Black immigrants in 2021

 -

 5

 10

 15

 20

 25

 30

 35

 40

 45

 50

200520062007200820092010201120122013201420152016201720182019

2021*

Millions

Black Non-Latino Black Multiracial Black Latino

Source: Fannie Mae computations from American Community Survey 

PUMS 1-year estimates, 2005 – 2019 and 2021. 2020 datapoints are omitted 

due to quality concerns. Black population includes Black in combination 

with other race(s) and Latino Black.

2.8

4.5

4.7

6.6%

8.4%

8.7%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

0

1

2

3

4

5

2005200620072008200920102011201220132014201520162017201820192021

Millions

Number of Black Immigrants

Immigrant Share of Black Population

Source: Fannie Mae computations from American 

Community Survey PUMS 1-year estimates, 2021. 

Black consumers are diverse and consist of people from many racial and ethnic identities and experiences. The population of Black consumers 

has grown by almost 29% over the last two decades. Considerations should be taken to thoughtfully understand the geographic, economic, 

cultural, and demographic characteristics and heterogeneity of Black consumers.

Growing diversity of Black America
11

The first use case was to apply the Consumer 

Housing Journey to Black consumer experiences 

and chronicle the major housing challenges Black 

consumers face throughout their housing journey. 

Key obstacles 

Access to credit

Household financial 

profiles create 

barriers to savings 

with higher shares of 

housing cost 

burdens, thin credit, 

or higher debt-toincome ratios.

Financial resilience

Smaller savings for 

post-purchase 

maintenance, natural 

disasters, or income 

disruptions.

Upfront & ongoing 

housing costs

Limited funds for 

security deposits, 

down payments/ 

closing costs, lower 

credit scores, and 

credit invisibility.

Inadequate 

affordable supply Property resilience

Higher rates of 

housing repair needs, 

aging housing stock, 

and disproportionate 

exposure to 

hazardous risks and 

climate effects.

Note: Obstacles are shared with the Latino Housing Journey.

The Housing Journey identifies the stages all homeowners and 

renters experience
12

Consumers who identify as Black and/or Latino share many obstacles, and 

we have an opportunity to design solutions that impact both consumer 

groups LHJ obstacles BHJ obstacles

* Indicates where Fannie Mae has acted within the Equitable Housing Finance Plan.

Citizenship/non-citizenship status

Language preference/barriers

Negative experience with mainstream 

financial services/mistrust of banks

Higher household density misalignment 

with traditional financing, affordable 

products, rentals

Employment instability

Long-term effects of land loss from 

historical discriminatory exclusion 

from legal, title, and loan resources

Lower home value appreciation

Long-term effects of pervasive 

predatory mortgage lending during 

the late 1990s and early – mid-2000s

Higher tax rates

Diminished family and household 

wealth arising from past explicit 

federal discriminatory lending 

practices (redlining)

Mortgage/rent applications denied 

at higher rates, even when 

controlling for credit and other 

factors

Shared obstacles

Higher concentration in 

high-cost markets

Higher closing costs relative 

to income

Lack of credit availability in 

historically redlined 

communities

More likely to receive a 

high-cost mortgage loan

Higher rental application 

fees

Appraisal bias

Racial steering by property 

owners & real estate 

professionals

Restrictive zoning/antiimmigrant housing 

ordinances (AIHOs)

Higher insurance costs due 

to unequal effects of 

climate change

Exposure to environmental 

hazards & climate risks *

Underutilization of/limited 

acceptance of Housing 

Choice Vouchers by 

property owners

Shown fewer 

rentals/difficulty obtaining 

rental listings

Higher debt-to-income ratio

More credit invisibility and 

lower credit scores *

Higher instance of 

“unbanked” households

Greater usage of more 

expensive, non-traditional 

financing

Lower instance of renters 

insurance

Higher incidence of 

unexpected fees during 

rental lease & excessive rent 

increases during lease 

renewal *

Misalignment of housing 

products criteria with gig 

economy income *

Limited emergency 

savings/post-purchase 

challenges/higher rates of 

home repair needs *

Lower household 

income

Aging housing 

stock

More difficulty in 

passing financial 

background checks

Higher rates of 

rental arrearage & 

eviction

Less likely to 

refinance

Rental approval process knowledge gap

Frequent moving

Traumatic experience 

with homeownership 

during Great 

Recession

Difficult 

experience/ 

perception 

obtaining a 

mortgage *

Less 

access/availability 

of tenants rights

Higher shares of 

housing cost 

burden

Limited savings for 

up-front/ongoing 

costs *

Higher insurance costs

Income 

volatility

Informal Income
13

• Long-term effects of land loss from historical 

discriminatory exclusion from legal, title, and 

loan resources

• Long-term effects of pervasive predatory 

mortgage lending during the late 1990s and 

early – mid-2000s 

• Diminished family and household wealth 

arising from past explicit federal 

discriminatory lending practices (redlining)

• Lack of credit availability in historically 

redlined communities 

• Inadequate affordable supply for renters & 

homeowners

• Mortgages/rent applications denied at higher 

rates, even when controlling for 

credit and other factors. 

• Higher concentration of borrowers of color in 

high-cost markets

• More likely to receive a high-cost mortgage 

loan

• Higher closing costs relative to income

• Higher tax rates

• Higher rental application fees

• Appraisal bias

• Racial steering by property owners and real 

estate professionals

• Restrictive zoning creating de facto new 

segregation

• Higher insurance costs due to unequal effects 

of climate change

• Higher instance of exposure to environment 

hazards & climate risks

• Lower home value appreciation than white 

homeowners

• Underutilization of/limited acceptance of 

Housing Choice Vouchers by property owners

• Exposure to environmental hazards and 

climate risks

• Difficulty obtaining rental listings/shown 

fewer rentals

• Higher debt-to-income (DTI)

• More likely to be credit invisible

• Limited savings for down payment, closing 

costs, high up-front rental costs (security 

deposits & application fees)

• Greater instance of lower credit scores

• Highest incidence of “unbanked" households

• Greater usage of high-cost, non-traditional 

financing

• Lower instance of renters insurance

• Higher incidence of unexpected fees during 

rental lease and excessive rent increases 

during lease renewal

• Fewer family and community resources for 

building wealth

• Higher incidence of housing cost burden 

creating barrier to savings

• Higher rates of foreclosure during the 

financial crisis/Great Recession

• Misalignment of housing products criteria 

does not adequately consider income earned 

via the gig economy

• Lower household income on average

• Higher incidence of traumatic family or 

household experiences with homeownership 

during Great Recession

• Misperceptions and/or difficult experience in 

obtaining a mortgage

• Less access/availability of tenants rights

• Higher incidence of post-purchase 

challenges, especially higher rates of home 

repair needs

• More limited access to or awareness of risk & 

need for flood, wind, fire insurance

• Less likely to refinance to gain more 

favorable loan terms

• Gentrification/displacement

• Higher rates of eviction & rental arrearage

• More difficulty in passing rental background 

check

• Aging housing stock

Barriers rooted in history Household financial profiles Knowledge, attitude, 

and experience

Black families face significant and distinct barriers to homeownership and stable rental housing.

Bias and unequal access

BLACK HOUSING JOURNEY BACKGROUND

13

One journey, different barriers
14

Housing Preparation Renting or Buying Move In and Maintain Diversify the Industry

• Expanded Financial Capability 

Coaching & HUD-approved counseling 

• HomeView® and HomeView® Spanish

• Climate analytics

• Expanded counseling services 

to renters and borrowers

• Special purpose credit program 

home retention features

• Fair servicing best practices

• Neighborhood revitalization and 

infill in Baltimore, MD

Address broader challenges

through education

Ensure housing stability Provide support throughout 

the housing lifecycle

Access to quality rental & 

opportunities for homeownership

• Future Housing Leaders®

• Appraiser Diversity Initiative

• MF Borrower Diversity Program

• DUS® Correspondent Lender Diversity 

Program

• Positive Rent Payment History & 

cashflow underwriting in Desktop 

Underwriter® 

• Positive Rent Payment service for 

renters

• Solutions to defray up-front renter 

security deposits

• Closing costs concessions and 

Attorney Opinion Letters

• Special purpose credit programs

• Appraisal modernization and 

valuation products

• Sponsor-Dedicated Workforce & 

Sponsor-Initiated Affordability 

housing

• Developing micro-factories for 

modular home finishings

• Housing opportunities for creditinvisible Black renters

• Value derived from Social Index

1 2 3 4

Over the last few years, we introduced innovative solutions and policy changes to progress equity in the housing finance ecosystem. This is just the 

beginning. Using the journey as a roadmap, we can drive an aligned view and greater understanding of the housing obstacles facing Black and Latino 

renters and homeowners and determine where we can drive actions or partnerships across the industry that can have the greatest impacts to 

reduce or eliminate the obstacle.

We’re focused on knocking down barriers across the consumer 

housing journey for Black & Latino renters & homeowners
Data & Research Findings
Foundational references

Key points/implications/changes to note

• Key data point of loss of 98% of Black farms, and therefore homes, was not originally captured and was one of the many drivers behind the Great Migration. The U.S. 

Archives state, “Black people who migrated during the second phase of the Great Migration were met with housing discrimination, as localities had started to implement 

restrictive covenants and redlining, which created segregated neighborhoods, but also served as a foundation for the existing racial disparities in wealth in the United 

States.” https://www.archives.gov/research/african-americans/migrations/great-migration#:~:text=The%20Great%20Migration%20was%20one,the%201910s%20until%20the%201970s.

• The Civil Rights Act of 1964 paved the way to immigration from countries in Africa, Asia, Central America, South America, and the Caribbean.

The well-documented history of discrimination against black farmers, which the U.S. Department of Agriculture ascribed to the decline of African American farmers owning 19 million 

acres to around 3.6 million acres of farmland, spans the New Deal and USDA discriminatory practices from 1930s to 1950s-era exclusion from legal, title, and loan resources. A Time to Act: 

https://archive.org/details/timetoact1545usda

From the 1910s until the 1970s, approximately six million Black people moved from the American South to Northern, Midwestern, and Western states to escape racial violence, pursue 

economic and educational opportunities, and obtain freedom from the oppression of Jim Crow. This Great Migration was one of the largest movements of people in United States history. 

The Great Migration (1910 – 1970): 

https://www.archives.gov/research/african-americans/migrations/great-migration#:~:text=The%20Great%20Migration%20was%20one,the%201910s%20until%20the%201970s

During the early 20th century, a pattern of intense violence targeting Black Americans occurred throughout the United States. Known as the Red Summer, this period saw financial centers 

intentionally destroyed. One instance occurred in Tulsa’s Greenwood District, also known as Black Wall Street, which contained successful businesses owned and operated by Black 

Americans. The Tulsa Massacre of 1921 had an estimated number of African American deaths from 26 to at least 150. The attack on Black Wall Street included the first aerial bombing of a 

U.S. city. https://rediscovering-black-history.blogs.archives.gov/2020/05/20/portal-spotlight-civil-unrest-and-the-red-summer/ (May 2020)

Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of 

employment, on the basis of race, color, or national origin. Through the Civil Rights Movement, in 1965, immigration based on a quota system was determined that it favored the 

Western European nations over others. The U.S. Congress changed the immigration system from a quota system to a preference system, including family reunification. 

https://www.archives.gov/milestone-documents/civil-rights-act

The Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related 

activities. Additional protections apply to federally-assisted housing. https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview#_The_Fair_Housing

Black households are a diverse group. A recent study by the JCHS highlights the diversity of the Black population, showing that nearly one in eight Black households were immigrants as of 

2019. They conclude, “further research is required to take a closer look at the diversity among Black households, and further unpack the roles of place of birth, ethnicity, and migration 

histories to better understand challenges to and opportunities for Black homeownership.” 

https://www.jchs.harvard.edu/research-areas/working-papers/black-immigrant-homeownership-national-trends-and-case-metro-boston

RESEARCH & DATA

16
Research finds that socioeconomic factors (age, education, household) explain much, but not all, of the homeownership 

gap. Income and wealth are particularly important. (Begley, 2020)

Households who become homeowners have higher income, more stable income, higher lifetime income expectations, and more 

savings. Wealth is generally found to be a more important factor than income in explaining homeownership gaps. (Begley, 

2020)

Black families are less likely to have help building wealth:

72% of white families report they could get $3K from family or friends, compared to 41% of Black families. Black and Hispanic

families are less likely to have received or expect an inheritance. (Fannie Mae calculations using the SCF 2019)

The homeownership gap is particularly stark for Black households compared to white non-Hispanic households: This 

percentage gap has been relatively consistent over time since the early 1900s, despite gains in overall homeownership. (Fannie 

Mae calculations from IPUMS microdata for Decennial Census, 1900 – 2010, ACS 2015 – 2019)

Over a quarter (27%) of Black adults ages 18 – 49 have earned income via an online gig platform compared to 34% of 

Hispanic adults and 16% of white adults. Non-white gig platform workers are more likely (48% vs. 30%) to have earned income 

performing multiple types of gig work, including providing meal deliveries, driving for ride sharing apps, shopping, delivering 

groceries or household items, or using a personal vehicle to deliver packages via an app or website. (Gelles-Watnick and 

Anderson, 2021). 

https://www.pewresearch.org/fact-tank/2021/12/15/racial-and-ethnic-differences-stand-out-in-the-u-s-gigworkforce/#:~:text=Even%20among%20adults%20under%20the,via%20an%20online%20gig%20platform. 

Lack of family experience or traumatic experience 

with homeownership

Less likely to have family experience in homeownership 

and a financial safety net.

Black households are less likely to have parents who are 

homeowners, who have higher levels of overall wealth and 

education, and who can provide a financial safety net or down 

payment assistance. (Begley, 2020)

Black homeowners experienced higher rates of foreclosure 

during the financial crisis.

Of loans originated between 2005 – 2008, Black homeowners 

were 76% more likely to be foreclosed upon than nonHispanic white people. (Bocian, et al., 2010)

Socioeconomic factors, including disparities in 

income and wealth, are barriers to homeownership

Key points/implications

• Socioeconomic factors such as age, education, and household composition, along with income and wealth, explain much, but not all, of the homeownership gap.

• Black consumers/households often do not have family wealth or relatives they can “lean on” to help them transition to homeownership. They must navigate the process and 

build enough savings all on their own, which is difficult.

• In fact, some Black consumers may have experienced more traumatizing (versus positive) events and discrimination surrounding homeownership, including foreclosure, 

negative experiences with banks/lenders, etc.

RESEARCH & DATA

Black households are more likely to indicate experiencing 

income volatility, a leading indicator of increased mortgage loan 

default. Nearly half (47%) of low-income Black households 

experienced either medium or high month-to-month income 

volatility compared to 44% of low-income Hispanic and 32% of lowincome white households. (Hardy, Morduch, Darity, and Hamilton, 

2018).

17
89% of Black renters aspire to own a home one day, which 

is slightly higher than white renters (80%) and Hispanic 

renters (81%). (Fannie Mae National Housing Survey, Q4 

2021)

For Black renters, the top reason for renting is to 

“become financially ready to own”; whereas for white 

renters, the top reason is “flexibility.” (Fannie Mae 

National Housing Survey, Q4 2019)

Black renters want to understand many aspects of the 

homebuying process but are most interested in learning 

about 1) how much home they can afford (58%), and 2) 

down payment assistance programs (58%). (Fannie Mae 

National Housing Survey, Q2 2021)

17% of Black and 20% of Hispanic renters say building 

credit history for future financial goals is a challenge 

during the lease in comparison to 9% of white renters. 

(Fannie Mae Multifamily Renter Needs Research, August 

2021)

Black renters are significantly more cost-burdened in 

comparison to white renters across all age cohorts. The gap 

is widest among the 25 – 44 and 45 – 64 age cohorts — the 

prime periods for homebuying, building wealth/financial 

capacity, and raising families. (Fannie Mae calculations using 

the 2019 ACS PUMS)

25 – 44 — Black: 53%, white: 35%

45 – 64 — Black: 53%, white: 41%

*Households are deemed housing cost-burdened if they spend more than 

30% of their gross pre-tax income on rent; severely cost burdened if they 

spend more than 50%.

Disproportionate representation in voucher use: Black 

households were 50% of Housing Choice Voucher holders in 

2020. The average voucher holder spends 28 months on a 

waiting list and lives in a census tract with a 23% poverty rate. 

(HUD Picture of Subsidized Households, 2020)

Voucher acceptance challenges: The challenge of limited 

acceptance of Housing Choice Vouchers disproportionately 

impacts non-white renters/study participants and those with 

low income. 46% of renters with a voucher said they had 

trouble finding a place that would accept their voucher; 

Hispanic renters (56%) and temporary renters (51%) are more 

likely to have trouble. (Fannie Mae Multifamily Renters Needs 

Research, August 2021)

Black renters carry higher shares of housing 

cost burdens, creating barrier to savings

Black renters want to own and to better Voucher usage higher and more challenging

understand the homebuying process

18 Fannie Mae Confidential and Proprietary. 

There is an intention to own a home, but 

Black renters face unique obstacles

Key points/implications

• Even though Black renters’ top reason to rent is to become financially ready to own, they are more cost-burdened at every age, slowing down their journey to be financially 

ready to own.

• Because so many Black households are renters, it is vital to ensure they can build a solid financial foundation while renting in order to make a transition to homeownership.

• Black renters are interested in learning about many of the financial aspects of buying a home, indicating there could be a knowledge gap/opportunity.

RESEARCH & DATA

18
20% of Black and 24% of Hispanic renters cite difficulty finding information on rental 

listings prior to moving, compared to 14% of white renters. (Fannie Mae Multifamily Renter 

Needs Research, August 2021)

Fewer rental units shown: Black home seekers were told about 11.4% fewer rental units 

and shown 4.2% fewer rental units than white home seekers. (Turner, et al., 2013)

More rental application fees: 84% of Asian renters and 73% of Hispanic and Black renters 

pay an application fee vs. 56% of white renters. In urban areas, the differences are 

smaller, but the disparity remains. (Zillow Group Consumer Housing Trends Report, 2019)

After renting a home, Black renters indicate the most useful information to have would be 

tenants rights in lease agreements (53%). This would also be most useful for white and 

Hispanic renters, as well, but to a slightly lesser extent (48% and 41%, respectively). (Fannie 

Mae National Housing Survey, Q2 2021)

24% of Black and Hispanic renters cite passing the financial background check as a 

challenge prior to move-in, compared to 16% of white renters. (Fannie Mae Multifamily 

Renter Needs Research, August 2021)

31% of Black renters have had a rental application turned down, compared to 18% of 

white renters. (Fannie Mae Multifamily Renter Needs Research, August 2021)

48% of Black renters vs. 39% of white renters state the security deposit amount is a very 

important factor in choosing their rental home. (Fannie Mae Multifamily Renter Needs 

Research, August 2021)

19 Fannie Mae Confidential and Proprietary. 

Rental search and application challenges

Key points/implications

• More Black renters say they have difficulty finding information on rental listings and are told about and shown fewer properties.

• A higher percentage of underserved populations are paying application fees compared to white renters.

• More Black renters are reporting that they are having challenges passing the financial background check, are having their rental application turned down, and see the security 

deposit amount as a concern.

RESEARCH & DATA

19
Younger renters impacted

A smaller share of younger Black renters 

can afford to purchase a home relative to 

overall renters in the metropolitan area 

where they currently live (25% of Black 

renters compared to 33% of white renters 

in 2019). (Fannie Mae calculations using the 

ACS PUMS 2019)

Real estate professionals are more likely to show Black 

homebuyers homes in areas with higher crime rates, 

pollution, and lower school test scores. (Christensen and 

Timmins, 2021)

Real estate professionals show Black consumers 

more disadvantaged neighborhoods with lower shares of 

skilled (-3.02%) and college-educated residents (-3.4%). 

(Christensen and Timmins, 2021)

Black renters indicate real estate professionals would be 

the most influential resource when going through the 

mortgage process (23%). (Fannie Mae National Housing 

Survey, Q2 2021)

The homeownership gap is smaller in areas where housing is 

more affordable, local housing supply is less constrained, 

and where communities are less racially segregated/less 

affected by legacies of redlining. (Begley, 2020)

Recent work from the Chicago Federal Reserve Board identifies 

significant long-term negative effects of the Home Owners’

Loan Corporation (HOLC) “redlining” maps on neighborhood 

investment and credit access. (Aaronson, et al., 2021)

Nationally, nearly two-thirds of neighborhoods deemed 

“hazardous” through redlining procedures in the 1930s are 

inhabited by mostly minority residents, typically Black and 

Hispanic. (Mitchell and Franco, 2018)

20 Fannie Mae Confidential and Proprietary. 

Prospective Black homeowners are more likely to be 

shown properties in under-resourced neighborhoods

RESEARCH & DATA

Key points/implications

• Searching for a home may be more difficult for Black consumers due to some real estate professional biases as well as lack of affordable homes to buy.

• In some cases, due to financial constraints, Black consumers’ only options to buy may be in neighborhoods with higher crime rates and lower economic opportunity.

• Real estate professionals are top influencers for Black consumers when getting a mortgage.

• The racial homeownership gap is smaller in metropolitan areas where housing is more affordable and communities are less segregated.

RESEARCH & DATA

20
All consumers share a lack of understanding about the 

requirements for getting a mortgage: 40% of the general 

population does not know how much a lender would require 

for a down payment; 45% and 47% of Black and Hispanic 

consumers, respectively, do not know how much would be 

required for a down payment. (2018 Fannie Mae Mortgage 

Qualification Research)

Many overestimate down payment costs: 39% of potential 

homebuyers overestimate the required down payment for a 

mortgage. (2018 Fannie Mae Mortgage Qualification 

Research)

Lack of familiarity with requirements has 

disproportionate impacts: There is no evidence Black 

consumers are more misinformed; however, with lower 

average credit scores and available funds, the general 

unfamiliarity with the requirements may disproportionately 

impact Black consumers. (2018 Fannie Mae Mortgage 

Qualification Research)

Income and assets of prime homebuying age renters have 

been increasing since 2010; however, they are consistently 

lower for Black households. In 2019, the median household 

income of Black renters aged 25 – 44 was roughly two-thirds that 

of white renters, and median liquid assets were roughly onethird those of white renters. (Fannie Mae calculations using the 

SCF 2019 and ACS PUMS 2019)

Higher denial rates

Black applicants were denied 1.2 times the rate of white 

applicants in 2017 after controlling for credit and other factors. 

(Goodman and Bai, 2018)

Debt-to-income (DTI) ratio and credit histories are the most 

common reasons for denial for all borrowers. (Fannie Mae 

calculations using HMDA 2019, AHAR definitions)

A HMDA data analysis concludes that after controlling for AUS 

recommendation, credit scores, DTI, and LTV, the Black-white 

mortgage applicant denial gap is below two percentage 

points. This “excess denial” gap can partly be explained by some 

lender overlays. (Bhutta, et al., 2021)

68% of Black and 71% of Hispanic renters say they would 

have difficulty getting a mortgage; in comparison, a 

lower percentage of white renters, 58%, say they would 

have difficulty getting a mortgage. (Fannie Mae National 

Housing Survey, Q4 2021)

Understanding of credit score requirements: Nearly half 

of potential homebuyers overestimate the minimum FICO 

score required for a mortgage. (2018 Fannie Mae Mortgage 

Qualification Research)

Lack of understanding of down payment 

requirements

Less money for down payments and closing 

costs

Perception of difficulty of obtaining a 

mortgage

Financial challenges, denial rate, and negative 

perception impact homeownership opportunities 

RESEARCH & DATA

Black households are more likely to have used 

alternative financing when financing a home purchase 

compared with white households: 34% of Hispanic 

borrowers reported using at least one alternative 

arrangement compared with 23% of non-Hispanic Black 

borrowers and 19% of non-Hispanic white 

borrowers. Alternative financing methods include homeonly loans, personal property loans, chattel loans, rentto-own or lease purchase agreements, seller-financing, 

contract for deed or land contract. (Pew Charitable 

Trusts, 2022)

21
Black mortgage borrowers’ overall median credit scores are 

lower than white borrowers (691 compared to 748) (CFPB 2019, 

HMDA 2018). Differences in credit scores and credit attributes are an 

important contributor to the Black-white homeownership gap.

(Begley, 2020)

About 15% of Black and Hispanic consumers are credit invisible

(compared to 9% of white and Asian consumers), and they are more 

likely to have an unscored credit record due to lack of history, which 

limits their access to financing. (Brevoort, et al., 2016)

Higher household debt

The average amount of household debt 

for Black college graduates under 35 years 

old is $6,607 higher than white college 

graduates of the same age. (Goodman and 

Choi, 2020) 

Black renters’ top obstacle to getting a mortgage is insufficient 

credit score/credit history (45%), followed by affording the down 

payment/closing costs (40%). The order is flipped for white renters, 

where affording the down payment/closing costs is the top obstacle 

(42%), followed by insufficient credit score/credit history 

(30%). (Fannie Mae National Housing Survey, Q4 2021)

Black consumers face compounding financial pressures. 7% 

of Black consumers have a credit score in the top 30th percentile, 

compared to 35% of white consumers. (Brevoort, et al., 2021)

Across all income levels, a larger share of Black and Hispanic 

households were unbanked compared to white households, which 

could be a strong contributing factor to a lower credit score. 

(Brevoort, et al., 2021; FDIC, 2021)

A 2019 FDIC Survey found that “Don’t trust banks” was cited by 16% 

of all (Black, white, and Hispanic) unbanked households as the 

second-highest main reason for not having a bank account. The top 

reason cited was not having enough money to meet minimum 

balance requirements, at 29%. (FDIC Survey, 2019)

Key points/implications

• Black and Latino consumers have a higher instance of credit invisibility, which limits access to financing and credit.

• For Black renters, one of their main reported obstacles to getting a mortgage is insufficient credit. 

RESEARCH & DATA

22

Lower median credit scores and more invisibility
Key points/implications

• Black consumers have a higher debt-to-income ratio, with student loan debt being a key driver.

• For some Black households, having higher household debt and/or higher instances of being underbanked may factor into lower credit scores.

Lower median credit scores and more invisibility (continued)

RESEARCH & DATA

Black college graduates had higher levels of student loan debt and lower credit scores compared to white college graduates, contributing to Black college graduate households’ higher 

debt-to-income ratios. More than 3 out of 4 (77%) Black college graduates have student loan debt compared to half (56%) of white college graduates. Black college graduates under age 35 with 

a bachelor’s degree and graduate degrees had median FICO scores of 623 and 636, respectively, which are lower than that of white bachelor’s degree- and graduate degree-holders under 35, 

728 and 737, and lower than that of white households under 35 without a high school diploma, 680. Twice as many Black college graduates under 35 (16%) had no FICO score compared to 

white college graduates (7%) in the same age range. (Choi and Goodman, 2020)

https://www.urban.org/urban-wire/why-do-black-college-graduates-have-lower-homeownership-rate-white-people-who-dropped-out-high-school

Black college graduates carry nearly $25,000 more student loan debt than white graduates four years after graduation and are more likely to default on their student loan debt, 

contributing to higher debt-to-income ratios and lower credit scores. Black college graduates owe $52,726 on average in student loan debt compared to $28,006 on average for white 

college graduates. Black college graduates are more than three times as likely to default on their student loan debt within four years of graduation in comparison to white college graduates, 

7.6% and 2.4%, respectively. (Scott-Clayton and Li, 2016)

https://www.brookings.edu/research/black-white-disparity-in-student-loan-debt-more-than-triples-after-graduation/

At every income level, a larger share of Black and Hispanic households were unbanked compared to white households. Over a quarter of Black (29.3%) and Hispanic (26.5%) households 

with incomes of less than $15,000 were unbanked in 2021 compared to 13.6% of white households. Among households with incomes between $30,000 and $50,000, 8% of Black and 8.4% of 

Hispanic households were unbanked compared to 1.7% of white households. (FDIC, 2021)

https://www.fdic.gov/analysis/household-survey/2021report.pdf 

23
Choice of lender/broker may contribute to differences in mortgage 

costs for underserved borrowers.

Underserved borrowers pay higher mortgage broker fees when going to 

a white broker; Hispanic borrowers have higher fees when going to a 

Hispanic broker; and there is no difference in fees for minority and 

white borrowers when going to a Black broker. This emphasizes how 

lender/broker selection contributes to the differences in mortgage costs 

across white and minority borrowers. (Ambrose, et al., 2021) 

(Broker fees include origination fees plus premiums, so they include 

origination costs and rates.)

Black consumers pay proportionally larger closing costs. If Black 

and Hispanic low-income first-time homebuyers’ median closing 

costs as a percent of purchase price had been equal to those of their 

white non-Hispanic counterparts in our sample, their costs would 

have been reduced by $180 and $379, respectively. (Fannie 

Mae 2021 Closing Cost Study)

It appears that lenders and mortgage brokers make their most 

favorable offers to borrowers that they consider knowledgeable 

about competing alternatives. Borrowers in neighborhoods with 

low educational attainment receive substantially higher-cost 

offers, and although a significant share “walk away” from these 

offers, enough accept them to be profitable to lenders and brokers. 

(Woodward, 2008)

Appraisal bias may contribute to 

lower valuation

Refinancing appraisals: Homes owned by 

white borrowers were more frequently 

overvalued than homes owned by Black 

borrowers. Overvaluations of white-owned 

homes were present at a higher rate in all 

neighborhoods but were more likely to 

occur among homes owned by white borrowers 

in majority-Black neighborhoods (23% of white 

borrower homes vs. 13% of Black 

borrowers’ homes were overvalued in majority 

Black neighborhoods). Overvalued equates to an 

appraised value at least 10% higher than 

automated valuation models. (Fannie Mae 

Appraising the Appraisal Research, February 

2022)

24

Fannie Mae Confidential and Proprietary. 

Lenders and brokers contribute to the experience of 

underserved consumers

Key points/implications

• Lenders may be charging higher closing costs to borrowers buying in lower-educated and predominantly minority neighborhoods.

• Lenders and title companies could be assessing how knowledgeable the borrower is about competing alternatives and offering a higher price to those who may not 

have many alternatives or do not know they can “shop around” for better fees.

RESEARCH & DATA

24
After buying a home, Black homeowners cite cost-effective home repairs as what would be most 

helpful to them as ongoing information or education (46% of respondents). Access to a mortgage 

counselor would be the second most helpful item (40%), with refinancing options (36%) and 

household budgeting (35%) tied as third most helpful. (Fannie Mae National Housing Survey, Q2 2021)

Research shows that 59% of homeowners do not know how to maintain a home to avoid future 

repairs. 65% do not prioritize these types of tasks. (Fannie Mae, Home Management Market Viability 

Survey, 2020)

Black households report higher rates of repair needs (39.6%) compared to the general population 

(35.8%). Other groups also report high rates of repair needs, including Native American (47.7%), single 

mothers with children (46.8%), Hispanic (39.9%), and people living below the poverty line (42.8%). 

(Diviringi, et al., 2019)

Black and Hispanic households have limited emergency savings — white homeowners have $12K in 

median liquid assets, compared to $4K for Black homeowners and $3.7K for Hispanic homeowners. 

(Fannie Mae calculations from the SCF 2019). Short-term liquidity is a key factor in preventing 

mortgage default in response to income shocks. (Farrell, et al., 2017)

14% of Black and 18% of Hispanic renters report struggling with unexpected/late fees 

during the lease, compared to 8% of white renters. Additionally, nearly twice as many Black 

renters than white renters experienced moving charges that were not stipulated in the lease 

(Hispanic renters 23%, Black renters 15%, white renters 8%). (Fannie Mae Multifamily Renter 

Needs Research, August 2021) 

31% of Black renters said they have missed a rent payment or paid rent past due, compared to 

21% of white renters. (Fannie Mae Multifamily Renter Needs Research, August 2021)

Black renters receive the highest share of eviction filings and judgments — the average 

eviction rate was 3.4% for Black renters, compared to 2% for white renters. (Hepburn, et al., 2020)

In 2022, according to the Census Bureau, 22% of Black renters and 12% of both white and 

Hispanic renters reported being very likely to leave their current home due to eviction in the next 

two months. (U.S. Census Pulse Survey Week 48, 2022)

17% of Black renters cited building credit history as a challenge vs. 9% of white renters. The 

impact of not having a good credit history goes beyond housing challenges to loan approval, 

interest rates for other expenses, car, medical bills, etc. (Fannie Mae Multifamily Renter Needs 

Research, August 2021)

Renter rights and eviction disparities Post-purchase maintenance challenges

25 Fannie Mae Confidential and Proprietary. 

Both renters and homeowners face housing hurdles 

Key points/implications

• Black renters want more information on their rights.

• More Black renters than white renters report struggling with late fees, missed rent payments, and evictions.

• Black consumers report a high need for home repair information and services and have limited emergency savings as compared to white consumers.

RESEARCH & DATA

25
Black borrowers pay higher interest rates over the long term due to 

underutilization of refinancing. Black and Hispanic borrowers are less 

likely to refinance their mortgages during periods of falling interest rates, 

even after controlling for important factors like credit scores, equity, and 

income. (Gerardi, et al., 2020)

Lower rates of refinancing for Black and other minority consumers: 

When asked if they have ever refinanced their home, Black and Hispanic 

mortgage holders report a lower rate of refinancing (37% for both) 

compared to white mortgage holders (56%). (Fannie Mae National Housing 

Survey, Q4 2021)

Black homeowners do not realize appreciation gains at the same rate as white homeowners. Financial gains to 

homeownership were substantial for homeowners who bought and maintained homes from 1999 – 2009, while 

lower for lower-income households and also underserved households. (Herbert, et al., 2013)

On the other hand, research finds that the net wealth of Black homeowners in the early 2000s declined, regardless 

of purchase timing. They attribute much of this to differences in local housing markets across Black and white 

homeowners. (Newman and Holupka, 2016)

Black households may have higher tax burdens. Recent research shows that property taxes are regressive, with 

lower-valued homes and neighborhoods assessed at higher values relative to their sales prices and local public 

services. Appeals behavior and outcomes also differ across race, collectively leading to higher tax burdens for Black 

households and neighborhoods. (Avenancio-Leon and Howard, 2020; Berry, 2021)

As a result of appraisal bias and devaluation, a 2021 Brookings Institution report found that the median value of 

homes in Black census tract neighborhoods was 23% less than median home values in non-Latino or Hispanic 

white census tracts, and that this represented $156 billion in lost equity. 

https://www.brookings.edu/research/biased-appraisals-and-the-devaluation-of-housing-in-black-neighborhoods/

Less likely to refinance to gain more favorable loan terms Limited home value appreciation and increased tax burdens

26 Fannie Mae Confidential and Proprietary.

Lack of information around home valuation and 

refinance opportunities 

Key points/implications

• There is a gap in refinancing rates among Black mortgage holders, which could be leading to higher costs over the life of their loan.

• Black homeowners could be experiencing higher tax burdens and less wealth accumulation based on the location of their homes.

RESEARCH & DATA

26
Among all consumers, there is low awareness of flood risk and insurance, especially for 

individuals in mid-risk zones. People are not receiving enough information prior to purchasing a 

home, and when they do, it is from less trusted sources, vs. the government as most trusted source. 

In some instances, minorities have lower awareness than non-Hispanic white people. (Fannie Mae 

Consumer Flood Risk Awareness and Insurance Study, February 2022)

Black, Latino, Asian and people from other underserved groups are disproportionally exposed 

to air pollution, and ethno-racial disparities exists for all emission types (EPA, 2021). Climate 

Change and Social Vulnerability in the United States: A Focus on Six Impacts. U.S. Environmental 

Protection Agency, EPA 430-R-21-003: www.epa.gov/cira/social-vulnerability-report.

Black people in the U.S. are 40% more likely to currently live in areas with the climate-driven 

changes in extreme temperatures, and 34% more likely to be impacted by air pollution, 

increasing childhood asthma diagnoses. Latino people are 43% more likely to experience labor 

hour losses in weather-exposed industries due to climate-driven increases in high-temperature 

days, and 50% more likely to live in coastal areas with the highest projected increases in traffic 

delays from climate-driven changes in high-tide flooding. U.S. Environmental Protection Agency, 

EPA 430-R-21-003: www.epa.gov/cira/social-vulnerability-report

27 Fannie Mae Confidential and Proprietary. -- Confidential Commercial Information. Confidential Treatment and FOIA Exemption Requested.

Limited awareness of flood risk and flood insurance

Key points/implications

• There is an opportunity to bring better awareness and educate consumers on flood risk and insurance, so they are better informed and motivated to take appropriate 

actions to mitigate their risks.

Minorities in high-risk areas are less likely than non-Hispanic white consumers to say 

they were informed about flood risk when moving to their current residence (35% vs. 

44%). Minorities have a lower awareness than non-Hispanic white consumers that they live 

in high-risk (100-year) FEMA flood zones (26% vs. 40%).

Minorities are less aware than non-Hispanic white consumers of FEMA’s National Flood 

Insurance Program (high-risk zone, 46% vs. 56%). (Fannie Mae Consumer Flood Risk 

Awareness and Insurance Study, February 2022)

RESEARCH & DATA

27
28

Factors of housing cost burdens and aging housing stock RESEARCH & DATA

Black households experience higher energy expenditures compared to white households.

Research demonstrates Black renters spend $200 more per year and Black homeowners pay

$310 more per year than white renters and homeowners on electricity, natural gas, and 

additional home heating fuels. Additionally, Black renters and homeowners indicate they have 

fewer ENERGY STAR®-qualified appliances and are less likely to have received a tax credit or 

rebate for upgrading an appliance in their home. (Lyubich, 2020)

http://www.haas.berkeley.edu/wp-content/uploads/WP306.pdf

Black households experience a higher incidence of medical debt that threatens their 

housing stability and negatively impacts Black consumers’ credit scores. Over a quarter of 

Black households (27.9%) maintain medical debt compared to 17.2% of white households, and 

for 6.2% of Black households, medical debt exceeds 20% of their yearly income. This debt may 

affect multiple aspects of the mortgage process, including obtaining a mortgage and avoiding 

delinquency and foreclosure. (Haynes, 2022)

In 2020, Black borrowers were three times more likely to receive a high-cost mortgage 

loan. 13% of Black borrowers assumed a high-cost mortgage loan in 2020 compared to 5% of 

white borrowers. (Note: High-cost refers to loans with an interest rate at closing that is more 

than 1.5% above the Average Percent Offer Rate (APOR) for the day the loan closed.) (Carr, 

Zonta, Spriggs, 2021; NAREB report)

https://www.nareb.com/sitefiles/uploads/2021/11/2021_State_of_Housing_In_Black_America_Final_Full__WEB_11.08.21.pdf

Almost all the census tracts that have more than 80% of their housing stock built before 1980 

are in low-income minority tracts. The same observation basically holds true at the country 

aggregation.

https://my.sf.freddiemac.com/updates/news/news~where-is-the-aging-housing-stock-in-the-unitedstates#:~:text=Aging%20housing%20stock%20is%20defined,already%20gone%20through%20major

%20renovations.

Key points/implications

• Medical debt is a key factor in the higher overall debt-to-income ratio for Black mortgage applicants. 

• Aging housing stock and energy expenditures are contributory factors in the housing cost burdens of Black consumers.

• Black consumers are highly motivated to own and are more likely to assume a high-cost mortgage loan.

28
Research 

Background 

and Meeting 

Objectives

List of works 

cited in the 

Black Housing 

Journey

(Note: Some works are behind paywalls.)

• Aaronson, Daniel, Daniel Hartley, and Bhashkar Mazumder. “The Effects of the 1930s HOLC 

‘Redlining’ Maps.” American Economic Journal: Economic Policy 13.4 (2021): 355 – 92.

• Ambrose, Brent W., James N. Conklin, and Luis A. Lopez. “Does Borrower and Broker Race 

Affect the Cost of Mortgage Credit?” The Review of Financial Studies 34.2 (2021): 790 – 826.

• Avenancio-Leon, Carlos and Troup Howard. (2019). “The Assessment Gap: Racial 

Inequalities in Property Taxation.” SSRN Working Paper 3465010.

• Begley, Jaclene. (2020). “What Do We Know About Race and Homeownership?” Fannie Mae 

Internal Working Paper.

• Berry, C. R. (2021). Reassessing the property tax. SSRN Working Paper 3800536.

• Bhutta, Neil and Aurel Hizmo. “Do Minorities Pay More for Mortgages?” The Review of 

Financial Studies 34.2 (2021): 763 – 789.

• Bhutta, Neil, Aurel Hizmo, and Daniel Ringo. “How Much Does Racial Bias Affect Mortgage 

Lending? Evidence from Human and Algorithmic Credit Decisions” (July 15, 2021).

• Bocian, Debbie Gruenstein, Wei Li, and Keith S. Ernst. (2010). “Foreclosures by Race and 

Ethnicity: The Demographics of a Crisis.” Center for Responsible Lending Report (2010).

• Brevoort, K.P., P. Grimm, and M. Kambara. (2016). “Credit Invisibles and the Unscored.” 

Cityscape. 18(2), 9 – 34.

• Brevoort K.P., et al., (2021). “Update on the Economic Well-Being of U.S. Households: July 

2020 Results.” Board of Governors of the Federal Reserve System Report.

• Christensen, P. and C. Timmins. (2021). “Sorting or Steering: Experimental Evidence on the 

Economic Effects of Housing Discrimination.” National Bureau of Economic Research 

Working Paper #24826.

• Choi, J.H. and L. Goodman. (2020). “Why Do Black College Graduates Have a Lower 

Homeownership Rate than White People Who Dropped Out of High School?” Urban Institute 

Urban Wire Blog.

• Consumer Finance Protection Bureau. (2019). “Introducing New and Revised Data Points in 

HMDA.” Consumer Finance Protection Bureau Report.

• Brookings Institute. (2019). “Biased Appraisals and the Devaluation of Housing in Black 

Neighborhoods.” https://www.brookings.edu/research/biased-appraisals-and-thedevaluation-of-housing-in-black-neighborhoods/

29
Research 

Background 

and Meeting 

Objectives

List of works 

cited in the 

Black Housing 

Journey (p. 2)

• Divringi, Eileen, et al. (2019). “Measuring and Understanding Home Repair Costs: A National 

Typology of Households.”Philadelphia, PA: Federal Reserve Bank of Philadelphia and Policy 

Map Report.

• Farrell, Diana, et al. (2017). “Mortgage Modifications After the Great Recession: New Evidence 

and Implications for Policy.” SSRN Working Paper 3083560.

• Federal Reserve. (2021). Report on the Economic Well-Being of U.S. Households in 2020 —

May 2021.

• Gerardi, Kristopher, Paul Willen, and David Hao Zhang. (2020). “Mortgage Prepayment, Race, 

and Monetary Policy.” Federal Reserve Bank of Atlanta Working Paper Series # 2020-22.

• Hepburn, Peter, Renee Louis, and Matthew Desmond. “Racial and Gender Disparities Among 

Evicted Americans.” Sociological Science 7 (2020): 649 – 662.

• Herbert, C.E., D.T. McCue, and R. Sanchez-Moyano. (2013). “Is Homeownership Still an Effective 

Means of Building Wealth for Low-Income and Minority Households? (Was It Ever?).” 

Homeownership Built to Last, 10(2), 5 – 59.

• Mitchell, Bruce and Juan Franco. (2018). “HOLC ‘Redlining’ Maps: The Persistent Structure Of 

Segregation and Economic Inequality.” National Community Reinvestment Coalition Research 

Report.

• Newman, S. J. and C.S. Holupka (2016). “Is Timing Everything? Race, Homeownership and Net 

Worth in the Tumultuous 2000s.” Real Estate Economics, 44(2), 307 – 354.

• Turner, Margery Austin, et al. (2013). “Housing Discrimination Against Racial and Ethnic 

Minorities 2012.” HUD Office of Policy Development & Research Report.

• Wedeen, Sophia. (2021). “Black and Hispanic Renters Face Greatest Threat of Eviction in 

Pandemic.” Joint Center for Housing Studies Blog.

• Woodward, Susan E. (2008). “A Study of Closing Costs for FHA Mortgages.” U.S. Department of 

Housing and Urban Development, Office of Policy Development and Research.

• EPA. 2021. “Climate Change and Social Vulnerability in the United States: A Focus on Six 

Impacts.” U.S. Environmental Protection Agency, EPA 430-R-21-003. www.epa.gov/cira/socialvulnerability-report.

• Urban Institute. (2021). “The Future of Headship and Homeownership.”

• USDA, “A Time to Act,” https://archive.org/details/timetoact1545usda. 

30
Research 

Background 

and Meeting 

Objectives

List of works 

cited in the 

Black Housing 

Journey (p. 3)

• U.S. Archives, “Great Migration,” https://www.archives.gov/research/africanamericans/migrations/greatmigration#:~:text=The%20Great%20Migration%20was%20one,the%201910s%20until%20the%20197

0s. 

Harvard Joint Center for Housing Studies. (2023). “Black Immigrant Homeownership.” 

https://www.jchs.harvard.edu/research-areas/working-papers/black-immigrant-homeownershipnational-trends-and-case-metro-boston.

• Jaya Dey, Lariece M. Brown; Housing Policy Debate, 2022.

• “The Role of Credit Attributes in Explaining the Homeownership Gap Between Whites and Minorities 

Since the Financial Crisis, 2012 – 2018.”

31
• Fannie Mae Closing Costs Study, Q4 2021 https://www.fanniemae.com/researchand-insights/publications/barriers-entry-closing-costs-first-time-and-low-incomehomebuyers

• Fannie Mae National Housing Survey, Q4 2021 (not yet published)

• Fannie Mae National Housing Survey, Q2 2021 

https://www.fanniemae.com/media/document/xlsx/q2-2021-nhs-datasummary.xlsx

• Fannie Mae National Housing Survey, Q4 2019

• https://www.fanniemae.com/media/document/xlsx/q4-2019-nhs-datasummary.xlsx

• Fannie Mae Multifamily Renter Needs Research August 2021 (internal research, not 

published externally)

• https://fnma.sharepoint.com/:x:/r/sites/marketinsights/SharePoint%20-

%20Market%20Insights%20Research/Renter%20Research%202021/Copy%20of%20

Fannie%20Mae%20Renters%20Needs%20Research%20-

%20Dataset_.xlsx?d=w28a412b8b62d49a3bc08ba9e7bb28105&csf=1&web=1

• Fannie Mae National Housing Survey, Q3 2021

• https://www.fanniemae.com/media/document/xlsx/q3-2021-nhs-datasummary.xlsx

• 2018 Fannie Mae Mortgage Qualification Research

• Consumer Mortgage Understanding Study - June 2019 (fanniemae.com)

• Fannie Mae Consumer Flood Risk Awareness and Insurance Study, February 

2022 https://www.fanniemae.com/research-and-insights/perspectives/consumerawareness-flood-risk-and-insurance

• Fannie Mae, Home Management Market Viability Survey, 2020

• Fannie Mae, Appraising the Appraisal working paper, February 2022 

https://www.fanniemae.com/media/42541/display

Fannie Mae 

primary 

research cited 

in Black 

Housing 

Journey

32
Research 

Background 

and Meeting 

Objectives

Information on 

research

Opinions, analyses, estimates, forecasts and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in 

these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of 

assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. 

Although the ESR group bases its opinions, analyses, estimates, forecasts and other views on information it considers reliable, it does 

not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. Changes 

in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions,

estimates, forecasts and other views published by the ESR group represent the views of that group as of the date indicated and do 

not necessarily represent the views of Fannie Mae or its management.

This work leverages the most reliable bodies of research within the last 10 years that we 

identified and will continue to be updated as more reliable or relevant research is 

available.

33