Black homeownership in the U.S. fell 2.5% in the first half of 2025, as rising unemployment and federal workforce cuts disproportionately impact Black households.
U.S. Census Bureau data reveal the overall U.S. homeownership rate declined on a quarterly basis in the second quarter for the first time since 2016, leading to a 2.6% surge in the number of U.S. renter households. But new analysis from Redfin shows declining homeownership rates are not distributed evenly.
Amid housing affordability challenges, deteriorating labor market conditions and ongoing federal workforce downsizing by the Trump administration, the Black homeownership rate declined 1.4% in the second quarter to 43.9% from 45.3% a year ago. The rate of Black homeownership was 46.4% at the start of 2025, reflecting a 2.5% decline through the first half of the year.
Non-Hispanic white homeownership rates fell only slightly in the second quarter to 74% from 74.4% a year ago. The Hispanic homeownership rate inched up faintly to 48.8% from 48.5% a year ago, while the Asian, Native Hawaiian and Pacific Islander homeownership rate declined to 62.1% from 62.8%.
“Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently,” commented Daryl Fairweather, chief economist at Redfin, citing pressures on Black workers like federal downsizing and the rollback of diversity, equity and inclusion (DEI) programs.
Government jobs data published last week showed employment growth averaged just 29,000 for June, July and August as a months-long hiring slowdown persists. June’s already drastically reduced payrolls estimate was further revised down by 27,000 to reflect a net loss of 13,000 jobs that month — the first decline in payrolls since 2020.
A sharp rise in the Black unemployment rate coincides with the labor market weakening this year. After falling from 6.3% in April to 6% in May, the unemployment rate among Black workers reached 6.8% in June and 7.2% in July before rising to 7.5% in August — more than double that of white workers (3.4%), according to Bureau of Labor Statistics figures.
The unemployment rate for white workers actually declined on a yearly basis from 3.8% last August, while rising for Black workers from 6.1% a year ago. Unemployment rates also declined on a yearly basis for Asian workers, from 4.1% a year ago to 3.6% last month, and Hispanic workers, declining from 5.5% to 5.3%.
The overall unemployment rate rose slightly last month to 4.3% from 4.2% in July. The unemployment rate has remained stable between 4% and 4.3% since last summer, with a three-month trending average of 4.2%.
The shrinking of the federal workforce by the Trump administration has particularly impacted Black women by disproportionately hitting jobs in education, health, housing and community-facing roles where Black women workers are concentrated.
Research conducted by the National Women Law Center in May 2025 revealed that in September 2024, women represented 46% of the total federal workforce but a substantial majority of the workforce in five departments targeted for substantial downsizing:
- Department of Veterans Affairs (VA) — 64%
- Department of Education — 63%
- Department of Health and Human Services (HHS) — 63%
- Department of the Treasury — 61%
- Department of Housing and Urban Development (HUD) — 59%
Black workers’ share of the Department of Education (36%) and HUD (36%) was double their share of the overall federal workforce (18%) as of September 2024, while Black workers represented 29% of Treasury Department employees, 25% at the VA and 20% at HHS.
Analysis of Labor Department data by MSNBC revealed that from April to June of this year, nearly 300,000 Black women exited the labor force. The unemployment rate among Black women age 20 and older has risen from 5.4% at the start of 2025 to 6.7% in August, according to Federal Reserve Bank of St. Louis figures.
Highlighting a correlation between rising unemployment rates among Black workers and declining Black homeownership rates, single Black women made up roughly one-third of Black homebuyers in 2024, according to the National Association of Realtors.
“The recent wave of federal layoffs hit Black households badly because government jobs have historically been an avenue of upward mobility for Black workers,” Fairweather stated. “Behind the decline in Black homeownership are families who aren’t building stability and wealth through housing.”
