Homeownership – long a cornerstone of the “the American dream” – is increasingly out of reach for the average American. Over the past four decades, U.S. house prices have risen by 75% in real terms, pushing the costs of homeownership for the typical first-time homebuyer to a record high. At the same time, these rising prices have significantly boosted the wealth of existing homeowners.
As a sociologist who studies inequality in America through the lens of housing, I’ve spent the past few years looking into how rising house prices have affected the wealth gap between white and Black households, which has widened significantly over the past four decades. White families had about US$90,000 more wealth – in 2021 dollars – than their Black counterparts in 1984, an alarmingly wide gap. But by 2021, the gap had widened to almost $160,000.
