Housing can be, and historically has been, a gateway to economic opportunity. However, it is increasingly an economic barrier for American families. There is broad recognition that the relentless increase in the cost of renting or owning a home in the United States has put many already vulnerable families at further risk, widening inequality.

And as with other aspects of the US economy, Black Americans are particularly vulnerable. Rising prices and constrained supply have been most prevalent in megacities and other urban areas, where nearly 50 percent of Black families reside. Unaffordability is among the key reasons Black families are more likely to live in neighborhoods with challenged public schools and limited access to green spaces and other amenities that increase quality of life. Having a limited number of quality homes in mixed-income neighborhoods that are affordable also restricts job access, creating a drag on both workers and the broader economy.

Investing in housing: Unlocking economic mobility for Black families and all Americans, JP Julien and Shelley Stewart III, with José María Quirós, Kelemwork Cook, Kelsey Muller, Nick Noel, and Sophia Autor, McKinsey Institute for Black Economic Mobility, February 11, 2025, available here