SACRAMENTO, CA – August 31, 2021 – Golden State Finance Authority (GSFA) has launched a three-year education and outreach initiative designed to increase homeownership amongst minority groups in California. GSFA’s Build Minority Wealth through Homeownership is a comprehensive approach to provide greater access to financial literacy, expand homeownership among Black, Asian and other minority communities and in-turn help bridge the racial wealth gap that has plagued minorities for too long.
Minority homeownership rates fall far below those of White households as reported in 2021 data from the Census Bureau, with Black homeownership rates being the lowest. The homeownership rate overall stands at 63.5 percent. The rate among White households is 73.8 percent, Asian 59.6 percent, Hispanic 49.3 percent and African Americans 45.1 percent.
Real estate is a large factor in net worth. Even with a mortgage, owning a home contributes to net worth. According to data from the Federal Reserve's 2019 Survey of Consumer Finances, the median homeowner has a net worth 40 times the net worth of the typical individual who doesn't own a home. However, white households hold a significant wealth advantage over minorities, as seen in the huge historic gap in homeownership rates among races. The same survey from the Federal Reserve noted that the typical White household has eight times the wealth of the typical Black family.
GSFA will employ its expertise as a provider of affordable housing programs and its extensive network of lenders and realtors to expand homebuyer education about down payment assistance, with special emphasis on historically underserved Black communities. The campaign will also provide an educational video series on affordable housing, down payment assistance and financial literacy topics, regularly scheduled online homebuyer seminars and content showcasing success stories of minority homebuyers.
For more information about GSFA’s commitment to increase minority homeownership, contact Carolyn Sunseri at
csunseri@rcrcnet.org.
