Non-Hispanic White Versus Black Parental Wealth and Wealth Transfers to Enable Homeownership in Five Metropolitan Areas

Since at least the early twentieth century, U.S. housing polices have consistently promoted homeownership. While historically homeownership has been a significant source of wealth for many non-Hispanic Whites, this has not been the case for most Blacks, due in large part to differences in homeownership rates between the groups. Scholars have attempted to explain the differences in non-Hispanic White versus Black homeownership rates by analyzing structural factors as well as the recent negative impact of the Great Recession on Black homeownership and wealth. One particular focus to explain the lower Black homeownership rates has been the intergenerational drivers leading to differences in wealth between non-Hispanic Whites and Blacks. Non-Hispanic Whites often have more frequent and earlier access to homeownership than Blacks. This chapter analyzes how homeownership is facilitated through financial transfers from parents to children using data from the National Asset Scorecard for Communities of Color (NASCC) survey. The chapter provides evidence on the relationship between parental race and the prevalence of indirect and direct wealth and wealth transfers that enable homeownership. We also investigate non-Hispanic White versus Black differences for five metropolitan areas.