Wealth gap impacts Hispanic homebuyers in Texas
Add Axios as your preferred source to
see more of our stories on Google.
Hispanic Texans have one of the highest rates of mortgage denials in the country, with 19.1% of their applications denied.
Why it matters: Homeownership is a primary way to build wealth, and non-white Americans have historically been shut out of this opportunity due to systemic racism and segregation policies.
- This has created a racial generational wealth gap that persists into the 21st century.
The big picture: Mortgage applications submitted by Black and Latino Texans were disproportionately rejected compared to their white counterparts in 2020, according to Home Mortgage Disclosure Act data analyzed by Zillow.
Context: Dallas has a particularly racist history when it comes to housing. The city hired a consulting firm to propose solutions.
By the numbers: According to Zillow's report, 18.7% of Black mortgage applicants in Texas were denied in 2020, compared to 11.2% of white applicants.
- Zillow also found that 38% of Latino buyers said they were "very concerned" about qualifying for a mortgage, compared to 22% of white mortgage buyers.
- One third of Latino mortgage buyers reported being denied at least once for a mortgage before ultimately being approved, compared to 20% of white buyers.
Zoom out: Across the country, the denial rate for Black applicants was 19.8% versus 10.7% for white applicants.