Black Americans Pay More For Homes Than Any Other Group: Study Finds

BYCole Blake3.2K Views
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Homeowners, Black Americans
A study from MIT has concluded that Black Americans pay more for homeownership than any other group.

A new study from MIT has found that Black Americans pay more for homeownership than any other group.

Joe Raedle / Getty Images

The study, conducted by Edward Golding, executive director of the MIT Golub Center for Finance and Policy, reports that Black Americans pay more for mortgage interest, mortgage insurance, and property taxes than other homeowners.

The disparities are as follows: $743 per year in mortgage interest payments, $550 a year mortgage insurance premiums, and$390 per year in property taxes. All-in-all this accounts for a $67,320 loss in retirement savings for Black homeowners over 30 years.

"The small differences compounding over the life of the mortgage and during homeownership can add up," writes Golding. "Even if it is a few hundred dollars a year here and there, it can amount to another year's salary families would otherwise have."

"While mortgage costs are determined by markets to some extent," said Golding, "there is a great deal of public policy that influences these rates, especially as it impacts people of color. We can and should address these issues at a policy level and start now to eliminate the large wealth gap between Black and White homeowners that we created in part through our current mortgage system."

Check out the paper for yourself here.

[Via]


About The Author
Cole Blake is a current staff writer at HotNewHipHop based out of New York City. He began writing for the site as an intern back in 2018 while finishing his B.A. in Journalism at St. John’s University. In the time since, he’s covered a number of breaking stories for HNHH. These include the ongoing YSL RICO trial, the allegations surrounding Diddy, and much more. His work also extends outside of hip-hop, having written extensively about a myriad of topics including politics, sports, and pop culture. He’s attended several music festivals to provide coverage for the site as well, such as Rolling Loud and Governors Ball.
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