How Parental Wealth and Homeownership Affect the Homeownership Gap Between Black and White Young Adults
A new report from the Urban Institute examines the homeownership gap between black and white young adults, finding that having wealthy parents who are homeowners significantly increases a young adult’s likelihood of owning a home. Propensity for homeownership increases by 7-8 percent if a young adult’s parents are homeowners, and by more if they are wealthy homeowners. The authors say this perpetuates the racial homeownership gap because black parents’ homeownership rate is 35 percent below their white counterparts, and their median wealth is 15 times smaller.