The housing market is as unpredictable as McDonald’s ice cream machines and even if they are working – it’s unclear if you will even get a cone, particularly if you’re Black.

Despite the legacy of racism in housing, the federal government nonetheless persists in trying to get Black people to buy houses.

Recently, the U.S. Department of Housing and Urban Development hosted a roundtable discussion about “reimagining the HBCU student pathway to homeownership” by highlighting the importance of credit in the buying process, essential housing programs and counseling sessions.

“It is so critically important we focus on every corner and aspect of our country. If we allow this time – our moment in history to ignore and leave behind segments of our community then shame on us,” Alan Williams, HUD Deputy Assistant Secretary stated in his welcome.

Historically, housing discrimination against Black folks like redlining, which labeled certain areas with neighborhoods of racial and ethnic minorities as risky for home loans and biased appraisals undervaluing Black homeowners has made the reality of equitable home buying and selling immensely challenging.

While the Fair Housing Act of 1968 was created to prohibit discrimination in the sale, rental and financing of housing based on race, religion, national origin and sex, future and current Black homeowners continue facing systemic racism.

With HUD’s new 2023 Affirmatively Furthering Fair Housing rule under the Fair Housing Act, the agency aims “to remedy the effects of the long history of discrimination in housing.”

“Today, HUD is taking new, bold action to eliminate the historic patterns of segregation that continue to harm American families. This action will help make the purpose of the Fair Housing Act reality by making it easier for local communities to identify inequities and make concrete commitments to address them,” Demetria L. McCain, Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity noted in a statement.

The “racial homeownership gap” between Black and white families that own homes is now 29% compared to 26% in 2011, according to the National Association of Realtors, meaning the gap grew over the span of a decade.

Can the next generation even afford a home?

With the homeownership gap increasing and HUD advocating for HBCU students and alumni to explore pathways to buying a home, factors like student loan debt and economic stability for the next generation arose during HUD’s roundtable discussion.

One participant asked, “…the main cause of low homeownership among HBCU graduates is student loan debt, the student loan debt and the default rate have caused many post-grads out of the housing market. Can we discuss ways to help students understand the debt concerns about student loans?”

Nicole Oriol, deputy executive director of H.E.L.P. Community Development Corporation, a faith-based organization in the oldest Black-incorporated municipality in America – Eatonville, Florida — reassured participants: “You hear other people saying ‘just because you have student loan debt it’s impossible.’ That’s not true but that’s why you need to sit down with a HUD-certified housing counselor and let them look at your numbers (credit score).”

“Please don’t disqualify yourself just because you have student loan debt.”

While Biden’s student loan debt forgiveness plan is on hold awaiting a ruling from the U.S. Supreme Court, causing concern for federal borrowers that they might have to repay the loans. This is especially prospective Generation Z homebuyers, according to a Bankrate survey. Seventy-four percent of Gen Z respondents said they would delay financial decisions, including buying a home, due to student loan debt.

The next generation of HBCU graduates is Gen Z and they not only contend with student loan debt but 50% of them are also challenged with making just enough to cover basic living expenses, let alone saving.

Homeownership has always been associated with building generational wealth, because of home appreciation, but saving for a down payment, affording a mortgage and paying monthly bills isn’t a reality for everyone and definitely not for every generation.

Owning a home has been looked at as an investment while renting an apartment or house is assumed to be a waste of money, but financial planning experts like Eric Roberge see both options as a lifestyle and less of a responsible or irresponsible way to spend money.

“I’ve spent years thinking through the financial impact that buying a home would have on my lifestyle and quality of living — and my insights, experience, and knowledge as a financial planner say there’s a better way to use my money than to buy a home,” Roberge wrote in Insider.

With close to 60% of Gen Z associating owning a home with achieving the American Dream, this American Dream of homeownership also requires maintenance like cleaning out gutters, cutting grass and unexpected housing issues that renters don’t have to face with their predictable expenses.

Owning assets outside of being a homeowner is another way of building generational wealth, Bloomberg found that two-thirds of Black Americans’ wealth is held in housing and very little in other asset classes like stocks.

If a lifestyle of asset building to grow generational wealth is the goal, then there are pathways outside of homeownership to bring HBCU students and alumni over the finish line.

But if asset building through homeownership is the goal for HBCU students and alumni then homestead exemptions that exist in every state that holds an HBCU except for Pennsylvania offer to minimize property taxes for homeowners.

Whether making the decision to purchase a home or find other ways to create and assets tools of financial literacy are being served up on silver platters at HBCUs for students, alumni, staff and community members.

“Our HBCUs are the epicenters of knowledge for many communities, they are far beyond just academics, so homeownership has to be something that’s driven by our HBCUs as well,” Luwanna Williams, University Director of HomeFree-USA stated in the panel.

Housing programs for interested future Black homeowners

If making steps toward homeownership as a Black American is your goal, then these housing programs might just be for you.

T.D. Jakes Real Estate Ventures LLC

Later this year Bishop T.D. Jakes will break ground in Atlanta, beside Tyler Perry Studios on more than 95 acres of land with T.D. Jakes Real Estate Ventures, LLC. (TDJ REV), a group making housing more attainable for the Black community by building a development of affordable homes for lease or sale.

T.D. Jakes Real Estate Ventures, LLC also plans to offer its programs to mixed-income housing residents, as well as gather retail constituents to create grocery stores and hospitals within his 95 acres.

Home Free-USA

Owners of the largest African American mortgage servicing company in the country, National Loan Service Center started Home Free-USA in 1994 as a way of closing the homeownership gap between Black and white Americans by preparing renters of color for mortgage approvals and counseling future homeowners through the buying process. Home Free-USA also offers free home-buying counseling for the 14 HBCUs connected to their next network.

Home Free-USA specifically works with HBCU students to land them internships and careers in mortgage and real estate companies.

H.E.L.P. Community Development Corporation

From financial management, and first-time home buyers counseling to student loan debt action plans, the H.E.L.P. Community Development Corporation creates pathways to economic stability for interested homebuyers across the country.

H.E.L.P. Community Development Corporation not only works to empower future home buyers but also creates programs to steer homeowners away from the possibility of foreclosure.