The St. Louis REALTORS released a multi-part plan this morning designed to rectify the persistent racial homeownership gap in the region. The move comes three years after the organization, as one of the oldest real estate associations in the country, issued a public apology for the way it helped perpetuate and entrench racist housing practices in the region during the 20th century.
The roughly 75-page report uses an analysis of nearly 75,000 home purchases between 2017 and 2022 to show how the discrimination from decades ago continues to plague local Black residents’ ability to attain homeownership today, and generate lasting wealth. That analysis found Black homebuyers have significantly lower median credit scores, purchase homes that are 40-58 percent the price of non-Black buyers and face higher mortgage denial rates across all income levels, “often due to debt-to-income ratio, credit history, and collateral valuation disparities.”
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The report also points out the median income gap between Black residents and non-Black residents ($53,535 vs. $88,919 for singles and $80,888 vs. $152,424 for couples) and how that limits the former’s competitiveness in the housing market.
“Our industry has a responsibility to acknowledge the facts, respond to them with transparency and lead with measurable action,” says St. Louis REALTORS president Stacey Sanders in a release. “ This is about building generational wealth and creating a housing market that is equitable and sustainable for everyone.”
Go Deeper: Behind some of the topline numbers, the REALTORS’ report also looks at the challenges to higher homeownership rates by zip code to identify more “targeted interventions.”
“While broad regional strategies are necessary, the greatest return on investment lies in spatially targeted efforts that address both ends of the economic spectrum. North City and North County demand intensive, long-term engagement to alleviate entrenched financial disparities, while more affluent suburbs present near-term opportunities for expanding Black homeownership,” the report states.
What’s Next: The report lays out 10 recommendations to help Black residents achieve homeownership and build wealth, including enhancing financial literacy and credit scores, boosting downpayment assistance and increasing the housing supply. The report acknowledges these challenges “cannot be overcome by any one organization alone,” as many of the recommendations have implementation plans that seek to support, collaborate or partner with other organizations working on this. Says Nate Johnson, a past president of the St. Louis REALTORS: “Progress will depend on strong partnerships with financial institutions, sustained community engagement, and rigorous accountability. Together, we can translate these commitments into durable, equitable outcomes for families across our region.”
