“Homeownership is the number one way for African Americans to build wealth,” said Ron Cooper, president of National Association of Real Estate Brokers (NAREB). “There are so many other things tied to it.”
NAREB is an African American-led group that was founded in the 1940s to promote black homeowership and recently set a goal of creating 2 million new black homeowners within five years. Cooper acknowledged that target is highly ambitious.
“We lost a trillion dollars worth of wealth that we must regain,” Cooper said. “For America in general, if 2 million black homeowners bought homes, that raises the economy. America does well.”
After fair housing legislation was passed in 1968 during the Civil Rights era, the black homeowership rate increased for 30 years and reached nearly 50 percent in 2004, but all those gains have been erased in the last 12 years.
The homeownership rate for black households ended 2016 at 41.7 percent, near a 50-year low, according to the U.S. Census Bureau. Black homeownership hasn’t been this low since the time when housing discrimination was legal.
Equally troubling to advocates is a widening gap between black homeownership and other major ethnic groups. The black homeownership rate is now 30.5 percentage points lower than non-Hispanic whites (72.2 percent) and 22 percentage points lower than the national homeownership rate of 63.7 percent. It is also 4.6 percentage points lower than the Hispanic homeownership rate, the group with the next-lowest homeownership rate among the major ethnic groups, at 46.3 percent as of year-end 2016.
In my opinion I believe we should start by educating our children at an early age about financial responsibility, how to understand credit, investing, and planning for retirement. If they won’t offer in our public schools then we can start by offering the education in our churches in our communities. As parents it should be our responsibility to find out ways to better prepare our children than we were but finding places and people where they can be educated. If we start with our children then start to begin to make a generational paradigm shift into creating more generational wealth. At the same time we can educate every generation about credit, financing, planning for retirement. Let’s not stop there and talk about it let show people the roadmap to get there. The roadmap to better education, better jobs, better living. So many of us are used to living the same way because we are so used to doing it. We have been living in the same apartment or renting the same house for 10 – 15 years, working on the same job for 15 years, doing everything the same way because that’s what Momma and Daddy did. They paid rent and bills and and I wish I had more and I wish I could go on vacations and do more but that’s just a dream.
There is a story I read some 15-20 years ago about a man who came home from work and told his wife about how the guys ranted and raved over her famous pot roast. He begged her for the recipe and she gave him all the ingredients and told him exactly how she made it. Just before she put it in the oven she cut the ends of the pot roast put it in the roaster and placed it in the oven. He asked “Why do you cut the ends of the pot roast” She said I don’t know that’s the way my mother showed me. He said get Mom on the phone. I am curious about why she cut the ends off the roast. They get Mom on the phone and ask her why she cut the ends of the pot roast, she answered”I don’t know, that’s the way my mother showed me”. The husband is still curious and said you need to get Nana on the phone and ask her why she cut the ends off the pot roast. She said “Ohhhhh, that’s easy. When we were young we were so poor that we didn’t have a pan big enough for the pot roast so we had to cut the ends off”
It’s quite easy to be stuck in tradition of thinking the same way and doing things the same way.
Why don’t you make it up in your mind that 2019-2020 that you will be a homeowner and that you are not going to let nothing stop you from creating your wealth and the ability to get rid of your debt.
(40% of all houses in the United States are debt free)
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