Wealth Gap and Home Ownership
The wealth gap between Whites and Blacks often hinges on home ownership.
A 2017 study prepared by Prosperity Now and the Institute for Policy Studies posits, “Although…disparities are driven by several factors, disparities in homeownership rates account for much of the racial wealth divide. (emphasis added)”
Another interesting fact: “In 2015, the federal government spent $51 billion on public housing assistance programs, which was a little less than half of what was spent through the tax code to support home ownership during the same year through the Mortgage Interest Deduction and the Property Tax Deduction ($90 billion).
Although both programs support families in their efforts to secure a roof over their heads, families earning $100,000 or more took 90% of the $90 billion available through tax-related housing assistance, while those earning $50,000 received only about one percent of these benefits. In other words, despite the shared goal of boosting housing opportunities for Americans, wealth-building tax programs are designed to help the wealthy become even wealthier.”