The Root, October 12, 2021, The Democratic Party’s ‘I Don’t See Color’ Homeownership Fight, Explained
According to the National Community Reinvestment Coalition, the racial gap between Black and White homeownership is larger than it was in the 1950s – when banks could legally discriminate against against Black homebuyers.
The Decent Affordable Safe Housing for All Act, proposed by Democratic Sen. Ron Wyden, aims to close that gap but would actually increase racial inequality in the space due to its “race-neutral” design. This is because it will target first-time homebuyers, giving them $15,000 in tax-credits, irrespective of whether their parents owned any property before-hand.
Homeownership policies should instead focus on potential first-generational homeowners, whose family have not owned any homes prior to them. Seeing as 55 percent of Black people do not own their own houses, policies should be designed to increase their equity in this space rather than providing tax-benefits to all, which would further increase the racial gap in homeownership.