Black first-time home buyers see strongest rebound as national rates decline

Rhea-AI Summary

Black first-time home buyers maintained strong market presence at 62% in 2024, while overall first-time buyers declined to 44% from 50% in 2023. After dropping to 35% in 2021, Black first-time buyers rebounded to a record 63% in 2023, outpacing other racial groups.

The survey highlights persistent affordability challenges, with Black households earning a median income of $54,896, well below the $95,213 needed to purchase a typical U.S. home without being cost-burdened. Only 17.6% of listings are affordable for typical Black households, compared to higher percentages for Hispanic (28.2%), white (37.9%), and Asian (56.8%) households.

St. Louis emerged as the most affordable market for Black households, with 30.3% of listings within reach, followed by Birmingham (29.5%) and Memphis (29.0%). Remote work opportunities have expanded housing options, with Black renters 29% more likely to benefit from remote work flexibility in pursuing homeownership.

Positive

• Black first-time homebuyer rates held strong at 62% in 2024
• Remote work flexibility increasing homeownership opportunities for Black buyers
• Black homeownership increased more than white homeownership compared to 2019

Negative

• Overall first-time buyer market share declined to 44% from 50% in 2023
• Only 17.6% of listings are affordable for typical Black households
• Median Black household income ($54,896) falls significantly below required income ($95,213) for typical U.S. home

Insights

Market Research Analyst

The surge in Black first-time home buyers represents a significant market opportunity for Zillow, particularly as this demographic shows remarkable resilience despite broader market headwinds. The maintenance of a 62% first-time buyer rate among Black buyers, compared to the national decline to 44%, signals a robust and growing market segment that Zillow is strategically positioned to serve.

Zillow's introduction of the BuyAbility℠ tool demonstrates sophisticated market responsiveness, addressing specific pain points in the home-buying process. This technology-driven approach, combined with down payment assistance resources, creates multiple revenue touchpoints through the customer journey. The company's ability to capture and monetize this demographic trend could significantly impact its market share in key geographic regions.

The geographical distribution of affordable markets presents strategic growth opportunities. Cities like St. Louis, Birmingham, and Memphis, with higher affordability rates for Black households, represent potential high-growth markets where Zillow's tools and services could see increased adoption. The concentration of less affordable markets on the West Coast suggests opportunities for targeted product development and partnerships in these challenging but lucrative regions.

The integration of remote work considerations into Zillow's market analysis - showing Black renters are 29% more likely to benefit from remote work flexibility in homebuying - indicates sophisticated market intelligence that could drive product development and marketing strategies. This data-driven approach to understanding buyer behavior positions Zillow to capture value from evolving work patterns and their impact on housing choices.

Zillow's advocacy for policy changes affecting housing supply and affordability demonstrates long-term strategic thinking that could enhance its market position and brand value. This approach, combined with practical tools and resources, creates a comprehensive ecosystem that could drive sustained engagement and transaction volume across its platform.

SEATTLE, Feb. 20, 2025 /PRNewswire/ -- While recent first-time home buyer rates have declined nationally, Black buyers have experienced the strongest rebound. A recent Zillow® survey found that 62% of Black home buyers purchased their first home in 2024, holding steady from the previous year. In comparison, overall, first-time buyers made up just 44% of the market, down from 50% in 2023.

After a sharp drop from 47% in 2019 to 35% in 2021, the share of Black first-time buyers rebounded to 55% in 2022 and hit a record 63% in 2023 — outpacing other racial groups and the national trend.

"Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth," said Zillow Senior Economist Orphe Divounguy. "While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits and flexible lending options have helped increase access."

The rise of remote work has also expanded opportunities, giving some Black renters more flexibility to pursue homeownership in more affordable areas. Zillow research shows that Black renters are 29% more likely than other renters to be at a tipping point where remote work could make homeownership achievable.

Still, high housing costs and strict building regulations in many metropolitan markets limit opportunities for many buyers across the country, disproportionately impacting lower-income households — particularly Black households and other households of color. These areas often face supply constraints that drive up prices, and in markets with stricter building regulations, even fewer listings are affordable for the typical Black household.

A key measure of housing affordability is the monthly housing burden compared to household income. Black households face the steepest barriers, earning a median income of $54,896 — far below the $95,213 needed to buy the typical U.S. home in 2024 without being cost-burdened (spending more than 30% of income on housing). As a result, just 17.6% of listings are affordable for the typical Black household, compared to 28.2% for Hispanic, 37.9% for white, and 56.8% for Asian households, underscoring persistent gaps in homeownership.

St. Louis is the most affordable¹ housing market for typical Black households — those households earning the median income — with 30.3% of listings within reach in 2024. Birmingham follows at 29.5%, and Memphis at 29.0%. Other affordable markets include Detroit (28.6%), Baltimore (25.8%), Pittsburgh (23.7%), Cleveland (22.8%), Indianapolis (22.0%), Atlanta (19.2%) and Oklahoma City (18.8%). In contrast, the least affordable markets for potential Black home buyers are concentrated on the West Coast, including major California metros and Seattle.

Despite a steeper decline in the share of home listings that were affordable to the median earner, Black homeownership increased more than white homeownership in 2024 compared to 2019.  Only Hispanic households saw a higher percentage increase in homeownership.

Black first-time home buyers are driving homeownership gains, but barriers remain. Zillow, a leader in real estate and technology, is helping to tackle some of these challenges through innovation and advocacy. Zillow Home Loans' BuyAbility℠ tool gives buyers real-time, personalized insights on how interest rates impact their budget, showing estimated monthly payments and helping them find homes on Zillow that are within their price range. Zillow's down payment assistance tool connects buyers with financial resources through a simple questionnaire and dedicated page. Beyond technology, Zillow advocates for policies that expand credit access, boost housing supply and improve affordability.

Metro	Typical Home Value (Based on Zillow Home Value Index (ZHVI), December 2024 )	Typical Monthly Mortgage Payment	Household Income Needed to Afford Monthly Mortgage on a Typical Home	Share of Affordable Listings for Black Households (%)	Share of Affordable Listings for White Households (%)	Median household income overall (by metro)	Median Household Income (Black Households)	Median Household Income (White Households)
United States	$354,711	$2,380	$95,213	17.6 %	37.9 %	$75,301	$54,896	$85,970
New York, NY	$674,000	$4,825	$192,987	4.5 %	19.9 %	$79,445	$67,844	$78,305
Los Angeles, CA	$950,210	$5,989	$239,554	0.4 %	5.0 %	$77,684	$64,322	$78,823
Chicago, IL	$321,071	$2,423	$96,935	11.4 %	51.1 %	$74,576	$51,789	$111,865
Dallas, TX	$369,035	$2,670	$106,805	7.2 %	35.5 %	$68,092	$64,219	$82,655
Houston, TX	$305,539	$2,128	$85,120	14.3 %	52.4 %	$79,237	$60,055	$88,042
Washington, DC	$566,740	$3,742	$149,681	15.3 %	50.5 %	$71,469	$90,113	$87,213
Philadelphia, PA	$360,070	$2,511	$100,434	15.2 %	53.8 %	$94,463	$54,482	$83,898
Miami, FL	$483,889	$3,448	$137,902	12.4 %	26.4 %	$70,899	$61,111	$78,150
Atlanta, GA	$377,128	$2,602	$104,087	19.2 %	48.2 %	$80,791	$72,194	$79,237
Boston, MA	$687,322	$4,570	$182,814	3.6 %	18.4 %	$98,192	$77,684	$103,578
Phoenix, AZ	$450,312	$2,760	$110,411	3.8 %	23.6 %	$71,345	$61,111	$95,292
San Francisco, CA	$1,129,853	$7,220	$288,815	0.9 %	14.6 %	$88,767	$72,505	$98,814
Riverside, CA	$582,400	$3,768	$150,730	5.8 %	12.5 %	$66,539	$74,887	$100,782
Detroit, MI	$246,782	$1,735	$69,412	28.6 %	59.6 %	$93,220	$47,646	$78,305
Seattle, WA	$732,246	$4,762	$190,462	2.2 %	13.8 %	$71,883	$77,684	$88,042
Minneapolis, MN	$364,854	$2,581	$103,238	9.7 %	47.8 %	$88,042	$61,111	$101,507
San Diego, CA	$932,386	$5,864	$234,569	0.6 %	6.0 %	$80,170	$75,198	$148,117
Tampa, FL	$367,868	$2,536	$101,445	12.3 %	24.2 %	$124,294	$61,111	$103,578
Denver, CO	$578,402	$3,682	$147,269	3.9 %	24.0 %	$85,970	$64,219	$100,802
Baltimore, MD	$383,897	$2,562	$102,481	25.8 %	59.6 %	$80,791	$67,326	$82,863
St. Louis, MO	$248,944	$1,794	$71,756	30.3 %	61.5 %	$79,237	$48,889	$88,249
Orlando, FL	$389,796	$2,654	$106,159	12.7 %	25.2 %	$79,755	$66,290	$99,435
Charlotte, NC	$376,608	$2,406	$96,252	9.8 %	41.1 %	$78,927	$56,968	$84,934
San Antonio, TX	$279,985	$1,935	$77,384	17.1 %	46.4 %	$73,541	$59,040	$76,648
Portland, OR	$540,758	$3,578	$143,126	3.2 %	14.1 %	$88,042	$62,147	$87,627
Sacramento, CA	$574,042	$3,739	$149,574	2.5 %	12.5 %	$97,156	$70,640	$92,703
Pittsburgh, PA	$209,684	$1,503	$60,103	23.7 %	60.1 %	$81,620	$41,431	$106,893
Cincinnati, OH	$281,154	$1,842	$73,686	17.8 %	59.0 %	$63,493	$48,319	$83,898
Austin, TX	$442,669	$3,034	$121,370	6.1 %	30.3 %	$79,507	$74,576	$100,471
Las Vegas, NV	$428,628	$2,653	$106,107	7.0 %	20.5 %	$99,435	$58,004	$85,970
Kansas City, MO	$298,143	$2,102	$84,077	17.8 %	52.0 %	$88,042	$51,789	$104,821
Columbus, OH	$310,104	$2,206	$88,221	12.8 %	47.2 %	$73,541	$51,789	$92,703
Indianapolis, IN	$272,544	$1,846	$73,842	22.0 %	59.1 %	$77,684	$54,171	$90,735
Cleveland, OH	$225,119	$1,654	$66,159	22.8 %	59.9 %	$78,720	$41,431	$85,245
San Jose, CA	$1,607,357	$10,002	$400,078	0.1 %	5.9 %	$87,109	$90,113	$77,684
Nashville, TN	$440,417	$2,793	$111,709	3.4 %	26.9 %	$104,614	$58,025	$112,900
Virginia Beach, VA	$347,993	$2,361	$94,454	8.5 %	53.6 %	$84,209	$53,861	$91,563
Providence, RI	$477,077	$3,246	$129,856	4.7 %	16.7 %	$76,648	$61,733	$82,867
Jacksonville, FL	$348,956	$2,495	$99,794	11.4 %	34.1 %	$94,774	$55,932	$116,318
Milwaukee, WI	$341,543	$2,694	$107,775	10.5 %	41.8 %	$113,936	$43,710	$123,258
Oklahoma City, OK	$229,767	$1,681	$67,227	18.8 %	46.1 %	$113,522	$51,789	$99,435
Raleigh, NC	$436,744	$2,864	$114,573	4.9 %	41.0 %	$96,846	$65,254	$91,149
Memphis, TN	$232,491	$1,633	$65,337	29.0 %	59.5 %	$84,934	$50,753	$148,117
Richmond, VA	$368,933	$2,429	$97,178	13.8 %	52.4 %	$96,535	$62,665	$98,296
Louisville, KY	$255,717	$1,707	$68,298	14.1 %	55.6 %	$129,473	$43,089	$113,936
New Orleans, LA	$234,078	$1,684	$67,370	9.1 %	47.4 %	$89,077	$41,431	$102,646
Salt Lake City, UT	$541,465	$3,373	$134,936	16.7 %	17.9 %	$96,949	$98,399	$93,220
Hartford, CT	$360,289	$2,663	$106,511	17.4 %	46.7 %	$157,025	$70,433	$113,833
Buffalo, NY	$254,148	$2,023	$80,926	13.4 %	52.0 %	$104,511	$41,431	$155,367
Birmingham, AL	$246,545	$1,610	$64,405	29.5 %	54.7 %	$93,220	$52,825	$109,793

*Table ordered by market size

About Zillow Group:

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

¹ Affordability is based on total monthly costs — taxes, insurance, and maintenance — with a 20% down payment and mortgage costs under 30% of income, as of 2024.

 

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SOURCE Zillow

FAQ

What percentage of Black buyers were first-time homebuyers in 2024 according to Zillow (ZG)?

According to Zillow's survey, 62% of Black home buyers purchased their first home in 2024.

Which city is the most affordable housing market for Black households in 2024?

St. Louis is the most affordable housing market for typical Black households, with 30.3% of listings within reach in 2024.

What income is needed to buy a typical U.S. home in 2024 without being cost-burdened?

Buyers need an income of $95,213 to purchase the typical U.S. home in 2024 without being cost-burdened.

How has remote work affected Black homebuyer opportunities according to Zillow (ZG)?

According to Zillow research, Black renters are 29% more likely than other renters to be at a point where remote work could make homeownership achievable.

What percentage of housing listings are affordable for typical Black households in 2024?

Just 17.6% of listings are affordable for the typical Black household in 2024.