January 9, 2026
Unexpected or hidden costs of homeownership and the incapability to qualify for a mortgage are among the top concerns for Black millennial home buyers.
New data show that Black millennials are desperate to buy a home, among the largest investments most people will ever make.
In fact, 53% of them planning to buy a home this year would spend more than half of their monthly income to become homeowners. That proportion is larger than 44% of respondents polled overall with the same desire.
This discovery comes as many Black millennials are excluded from gaining the financial security and asset accumulation that home ownership brings. They are often stifled by barriers such as high home prices, high mortgage rates, and affordability concerns.
Jaime Dunaway-Seale, author of the “Millennial Home Buyer Report: 2026 Edition,” provided BLACK ENTERPRISE with a breakdown of the findings. The survey by Clever Real Estate covered 1,000 American millennial homebuyers, including 145 Black respondents.
Some 94% of Black millennials indicated facing at least one homeownership barrier. Among them: Interest rates are too high (37%), saving for a down payment (36%), and homes are too costly (33%). High property taxes (30%) and qualifying for a mortgage (27%) were also referenced.
And while the median U.S. home cost $410,800, around 76% of Black millennials planning home purchases at this time aim to spend under $400,000. And 40% of those individuals would consider a mortgage only if the interest rate were below the current 6% level.
Hence, 93% are concerned about buying a home. Among their top worries: unexpected or hidden costs of homeownership and being unable to qualify for a mortgage (both 24%). Being unable to afford a mortgage (23%) and overpaying or making a bad financial decision (22%) were other concerns quoted.
Typically, Black millennials looking at home buying are facing strong economic concerns, sharing that sentiment with all younger people seeking the same thing.
However, Dunaway-Seale provided some strategies that can help Black millennials buy now without having to wait indefinitely for market improvement:
- Use first-time buyer and down-payment assistance programs. She explained that many cities, states, and nonprofits offer grants or forgivable loans. She added that some of the methods are specifically geared to close racial gaps in homeownership.
- Expand your search. Look beyond the most desirable neighborhoods, where you can still find a quality, but more affordable, home. “Smaller homes, condos, or town homes can be steppingstones to a larger property. If you buy a home with a guest bedroom, consider renting it out to offset the mortgage.”
- Ask the seller to pay for a mortgage rate buydown. Dunaway-Seale says that action can help lower monthly payments. If the seller disagrees, another option is to refinance if rates fall.
- Reduce your debt before applying for a mortgage. She recommends paying down high-interest debt first and avoiding new debt for six to 12 months before applying.
- Improve your credit score to help you get a lower mortgage rate. Make your most recent payments on time. “If you have a one-time slip, call your credit card company and ask for a goodwill adjustment.”
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