What does this score mean?

A score of 100 represents racial equity, meaning there are no racial disparities in the outcomes between black and white populations. The lower the Equity Score, the greater the disparity.

For Homeownership, a score of 100 – a score reflecting racial equity – would mean black and white residents are equally likely to own their own home. It is important to note that for this indicator, equity is not our only goal; we also want to improve outcomes for all.

WHAT DOES THIS ANALYSIS MEAN?

White residents in the region are nearly twice as likely as black residents to be homeowners. In both St. Charles and St. Louis Counties, the white households are roughly 70% more likely to be owner-occupied than black households (85.1% relative to 49.7% in St. Charles; 76.2% relative to 44.2% in St. Louis County). In St. Clair County, white households are owner-occupied about 79% more often than black households (74.1% relative to 41.5%). In the City of St. Louis, white households are owner-occupied 84% more often than black households (56.4% relative to 30.6%).

If the rate of homeownership were equitable, there would be:

• 15,251 more black homeowners in the City of St. Louis,
• 2,090 more black homeowners in St. Charles County,
• 9,711 more black homeowners in St. Clair County, and
• 28,656 more black homeowners in St. Louis County.

Why Does Homeownership Matter?

Economic mobility, which is defined as “the likelihood that a family will move up the income ladder from one generation to the next,” is considered a core tenet of the American Dream. Homeownership has historically been the primary way for residents to build wealth. However, few black families were legally permitted to take advantage of homeownership opportunities in past generations. In addition, Alanna McCargo of the Urban Institute describes, “The disproportionate decline in black homeownership appears to be partly driven by the timing of their entry into the housing market – many minorities entering the market at or near the peak, when home prices were highest, and using riskier subprime lending products. When the foreclosure crisis hit, the impact was even more severe for minority buyers.”

Which Calls to Action from the Ferguson Commission’s report are linked with this indicator?

The Ferguson Commission’s calls to action related to homeownership include:

• Build Healthy, Affordable Housing
• Enact Inclusionary Zoning Ordinances
• Concentrate Financial Services through Empowerment Centers
• Create Individual and Family Development Accounts
• Strengthen the Community Reinvestment Act
• Encourage Savings With Tax-Refund Matching

Questions for Further Investigation:

• Why is there a racial disparity in Homeownership?
• What can St. Louis do to reduce racial disparities in Homeownership?
• What initiatives are currently underway to reduce racial disparities in Homeownership?

Homeownership Data