U.S. Bank shares ways to close the homeownership gap and support homebuying.

For more than two thirds of Americans, owning a home is a key step toward stability and building wealth. A home is a legacy that can be passed on through generations. But for many diverse segments, buying a home may seem impossible. A significant gap exists in homeownership rates between white Americans and Black, Hispanic and Asian Americans. As corporations seek to diversify their workforce, employers can take time to understand the situation and consider opportunities to support their employees in their efforts to become homeowners.

Bridging the gap in homeownership

Despite the challenges of the COVID-19 pandemic and accompanying economic headwinds, the increase in the overall U.S. homeownership rate was an encouraging statistic in 2020, but has since gone down a bit. There continues to be a significant racial homeownership gap in America.

In December of 2024, the U.S. Census Bureau reported that white homeownership remained strong. However, the Black homeownership rate was about 20 percentage points lower than the overall rate and nearly 30 percentage points lower than the white homeownership rate.¹ This gap is larger than it was in 1960, when housing discrimination was legal. The Asian and Hispanic homeownership rates also significantly lagged behind the white homeownership rate.

This gap in homeownership is concerning because owning a home has been proven to provide a multitude of benefits for individuals, families and communities. It can also lead to job stability. Homeownership is known to be a leading factor in building generational wealth for a variety of reasons, including:

• Forced savings: Monthly mortgage payments represent forced savings with homeowners building equity by paying down the principal on their loan.
• Building wealth: Homes often appreciate in value over time, helping homeowners build wealth.
• Tax benefits: There may be tax benefits for homeowners with deductions for mortgage interest and property taxes.²
• Fixed payments: Mortgage rates are typically fixed, providing homeowners with fixed costs each month.

Housing data on homeownership rates and the impact on household net worth indicate that one of the best ways for a family to build wealth is through homeownership. Data from the Federal Reserve indicates that the net worth of a homeowner is nearly 40 times greater than that of a renter.³

Supporting the homeownership goals of a more diverse workforce

Organizations can begin to support initiatives to close the homeownership gap for their employees and communities. Sustainable homeownership, the ability to buy and maintain a home, has a pivotal role in that process and offers the greatest opportunity to build wealth for families across the U.S.

“Employers have the opportunity to give individuals the pathway to help the dreams of homeownership come true,” says Lenny McNeill, executive vice president, national strategic markets, consumer lending, U.S. Bank. “The result of supporting the homeownership journey is more diverse staffing representing the communities we serve. This can lead to more future homeowners of all races and ethnicities and ultimately a positive impact on schools, retail businesses and the neighborhoods we call home.”

For some companies, the path to supporting and growing homeownership may not be as clear. How can organizations begin to aid an increasingly diverse workforce and work to close the homeownership gap?

Actionable steps employers can take

Organizations can help employees buy homes by partnering with realtors and mortgage companies that offer education and discounts. Many lenders, real estate agencies and local and state sponsored services provide free programs for employees, which can be shared on the company intranet or in internal messages. Some benefits for employees may include:

• Discounted real estate commissions and mortgage closing costs, plus many first-time homebuyer programs.
• Online and in-person educational resources covering topics like buying your first home, buying a home as a veteran, refinancing, rental properties, improving your credit score and more. Other helpful tools might be:
  • “Lunch and learn” seminars and after-work forums
  • Web based seminars and forums
  • Websites with terminology, articles, videos and mortgage calculators

Additionally, employers can support employees by:

• Using internal communications, like intranet sites, to highlight mortgage lenders that are providing discounts and offers
• Ensuring mortgage lenders can provide dedicated support and resources to first-time homebuyers
• Working with real estate agents and lenders who have a diverse staff and provide material translated into the languages employees speak
   

Consider how relocation can provide a unique opportunity for first-time homebuyers.

• Offer renters closing cost benefits to encourage homeownership.
• Ensure preferred relocation mortgage lender(s) and real estate agents have programs specifically for first-time homebuyers and offer discounts to help with affordability.
• Provide transferees with access to a website to research and engage vetted relocation-specific service providers.

The data and facts about the homeownership gap are eye-opening. But the good news is that employers can do something about it. Realizing the opportunity that is available to a diverse workforce and supporting employees’ homebuying goals are steps that organizations can take toward a more equitable and sustainable future for everyone.