The 25 Cities With the Worst Housing Inequality

Dr. Francesca Ortegren's Photo
By Dr. Francesca Ortegren Updated March 16, 2023

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Wealth in America is mostly held in either retirement savings or home equity — with roughly a third of wealth falling into each of these two categories (32.8% and 28.9%, respectively).

The average Black household in America, however, has less than one-tenth the wealth of a typical white household, and this certainly applies to home ownership and equity. A study by Clever confirmed that the racial wealth gap in the U.S. is reinforced by disparities in home prices — homes in predominantly Black zip codes are worth less than half as much as homes in predominantly white neighborhoods.

This disparity in home equity and generational wealth — of which Black families typically have less — has a ripple effect. When buying a home, with or without a real estate agent, lenders perceive borrowers to carry more risk if they have less money, so Black families are more likely to be denied mortgages (or have higher interest rates and less favorable terms if they are approved.) Over the life of the loan, a Black family will pay much more for the same home than a non-Black family.

In fact, researchers in 2015 found that Black borrowers pay 29 basis points more (or a 0.29% higher interest rate) than similar white borrowers. Black women are especially affected and pay 57.36 basis points more (or a 0.5736% higher interest rate) than white women.

Solving the racial wealth gap in the U.S. through home ownership would provide a benefit not just for Black families — it could also stimulate the economy by adding an estimated $1 trillion to $1.5 trillion by 2028. The typical Black family has approximately $12,780 in household wealth, compared to $139,300 for white families. Equalizing homeownership rates alone would decrease this racial wealth gap by more than $40,000.

White neighborhoods are valued nearly 60% more than Black neighborhoods. But, for every 10% increase in total housing market wealth, this is $147 billion in additional consumer spending. Building just 100 new low-income housing units could immediately create 80 jobs, plus an additional 72 jobs supported by ripple effects and new residents.

Innovative solutions, such as the nonprofit Dream Builders 4 Equity, can help reduce this wage gap and transform the lives of youth. Dream Builders 4 Equity’s Real Estate Program provides youth employment, training, and mentorship, while working alongside minority contractors, local youth rehab vacant homes in North City St. Louis to be sold to first-time home owners. This model could be adapted to other cities to provide similar benefits to the community.

Here are the top 25 cities with the worst housing inequality.

1. Flint, Michigan

Typical property values in predominantly Black zip codes: $32,563

Typical property values in predominantly non-Black zip codes: $242,693

Percent difference: 645%

Flint, Michigan, is probably best known for its water crisis that began in 2014. Its housing disparities, however, should also be noted. Flint tops the list of worst housing inequality with homes in predominantly non-Black zip codes valued at more than six times higher than those in predominantly Black ones.

2. Kansas City, Missouri-Kansas

Typical property values in predominantly Black zip codes: $75,707

Typical property values in predominantly non-Black zip codes: $466,458

Percent difference: 516%

The Kansas City metro is another area of concern — while the average property value in non-Black zip codes is approaching half a million dollars, those in Black zip codes don’t even top $100,000. Property values in Black neighborhoods are just a fifth of those in non-Black areas.

3. Toledo, Ohio

Typical property values in predominantly Black zip codes: $43,750

Typical property values in predominantly non-Black zip codes: $255,827

Percent difference: 485%

4. Miami-Fort Lauderdale-West Palm Beach, Florida

Typical property values in predominantly Black zip codes: $269,128

Typical property values in predominantly non-Black zip codes: $1,556,398

Percent difference: 478%

5. Bridgeport-Stamford-Norwalk, Connecticut

Typical property values in predominantly Black zip codes: $185,050

Typical property values in predominantly non-Black zip codes: $970,175

Percent difference: 424%

6. Milwaukee-Waukesha-West Allis, Wisconsin

Typical property values in predominantly Black zip codes: $97,536

Typical property values in predominantly non-Black zip codes: $470,030

Percent difference: 382%

7. Buffalo-Cheektowaga-Niagara Falls, New York

Typical property values in predominantly Black zip codes: $74,839

Typical property values in predominantly non-Black zip codes: $350,361

Percent difference: 368%

8. Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware-Maryland

Typical property values in predominantly Black zip codes: $154,024

Typical property values in predominantly non-Black zip codes: $690,475

Percent difference: 348%

9. Rochester, New York

Typical property values in predominantly Black zip codes: $60,656

Typical property values in predominantly non-Black zip codes: $255,403

Percent difference: 321%

10. Salisbury, Maryland-Delaware

Typical property values in predominantly Black zip codes: $173,458

Typical property values in predominantly non-Black zip codes: $723,613

Percent difference: 317%

11. Harrisburg-Carlisle, Pennsylvania

Typical property values in predominantly Black zip codes: $75,493

Typical property values in predominantly non-Black zip codes: $283,145

Percent difference: 275%

12. Niles-Benton Harbor, Michigan

Typical property values in predominantly Black zip codes: $145,020

Typical property values in predominantly non-Black zip codes: $526,641

Percent difference: 263%

13. Winston-Salem, North Carolina

Typical property values in predominantly Black zip codes: $102,775

Typical property values in predominantly non-Black zip codes: $366,325

Percent difference: 256%

14. Waco, Texas

Typical property values in predominantly Black zip codes: $79,050

Typical property values in predominantly non-Black zip codes: $279,968

Percent difference: 254%

15. Omaha-Council Bluffs, Nebraska-Iowa

Typical property values in predominantly Black zip codes: $86,109

Typical property values in predominantly non-Black zip codes: $296,337

Percent difference: 244%

16. Mobile, Alabama

Typical property values in predominantly Black zip codes: $117,955

Typical property values in predominantly non-Black zip codes: $405,333

Percent difference: 244%

17. Akron, Ohio

Typical property values in predominantly Black zip codes: $65,149

Typical property values in predominantly non-Black zip codes: $219,391

Percent difference: 237%

18. Charleston-North Charleston, South Carolina

Typical property values in predominantly Black zip codes: $526,190

Typical property values in predominantly non-Black zip codes: $1,726,639

Percent difference: 228%

19. Saginaw, Michigan

Typical property values in predominantly Black zip codes: $53,529

Typical property values in predominantly non-Black zip codes: $175,550

Percent difference: 228%

20. Cleveland-Elyria, Ohio

Typical property values in predominantly Black zip codes: $98,311

Typical property values in predominantly non-Black zip codes: $305,012

Percent difference: 210%

21. Tulsa, Oklahoma

Typical property values in predominantly Black zip codes: $64,136

Typical property values in predominantly non-Black zip codes: $195,799

Percent difference: 205%

22. Roanoke, Virginia

Typical property values in predominantly Black zip codes: $116,500

Typical property values in predominantly non-Black zip codes: $355,409

Percent difference: 205%

23. Baltimore-Columbia-Towson, Maryland

Typical property values in predominantly Black zip codes: $164,556

Typical property values in predominantly non-Black zip codes: $496,351

Percent difference: 202%

24. Detroit-Warren-Dearborn, Michigan

Typical property values in predominantly Black zip codes: $116,459

Typical property values in predominantly non-Black zip codes: $333,278

Percent difference: 186%

25. Jacksonville, Florida

Typical property values in predominantly Black zip codes: $154,033

Typical property values in predominantly non-Black zip codes: $439,282

Percent difference: 185%

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