Massachusetts households are becoming more diverse. According to the US Census, one quarter of households are headed by someone who is Black, Asian, Multiracial, or some other non-White racial group. Their share of total households has doubled since 2010, with the fastest growth among the latter three. As will be explored later in the needs assessment, housing outcomes for people of color are generally worse than for the population overall. Discriminatory policies and practices have been a factor in the Commonwealth’s house challenges for centuries. Redlining, exclusionary zoning, discriminatory real estate practices, restrictive covenants, transportation projects and urban redevelopment that displaced entire neighborhoods are some of the reasons for the stark situation we currently face. All of this contributed to a situation in which Black, Hispanic, and Native residents have less housing stability, higher rates of homelessness, fewer wealth building opportunities, less access to schools with high advancement rates, higher exposure to health risks, and less chance of upward mobility.
These disparities are evident in the racial homeownership gap: only 37% of Black households and 32% of Hispanic households own their home, versus 70% of non-Hispanic White householders. Many households face discriminatory practices and structures in the real estate industry. Even high-income borrowers of color in affluent neighborhoods face disparities in mortgage approval rates and home appraisal values. Analysis of Home Mortgage Disclosure Act data shows that high-income (above 120% AMI) Black and Hispanic mortgage applicants were twice as likely to be denied as White applicants.