Priced Out: Why Black Homeownership in Arizona Still Lags Behind

Reporter: Zion Kanyana

PHOENIX- Black residents in Arizona continue to own homes at much lower rates than the state overall, even with shifts into a more favorable market for buyers. 

Recent census data shows that Arizona’s homeownership rate at about 69.1% in 2024. While estimates for Black households across Arizona have a rate closer to the mid 30% range. This gap raises questions about what economic and structural factors are playing into this gap. 

Much of the divide appears to be affordability. In the Phoenix area, the median sale price is around $450,000 in late 2025. According to a recent update from the Common Sense Institute, home prices in Greater Phoenix remain 53.6% higher than they were in 2019. Even after recent modest declines, they said. These high values, coupled with rising mortgage rates, result in high upfront costs for aspiring homeowners. 

For some, costs have become the biggest hurdle. Arizona Homeowner Etalya Collins Johns said the price increase was her biggest challenge in buying a home, having bought her home in Glendale just last year. 

“The price of everything felt like it was increasing all at once,” Johns said, “The cash I had to bring just for a down payment was much larger than what I expected,” she said.  

Credit is another factor that could slow the path to homeownership. According to a research study done at Cornell University, data suggests that Black applicants tend to face higher denial rates for mortgage approval. “For these loans, Black applicants’ 8.4% point disparity translates to a denial rate over 1.5 times higher than that of non-Hispanic White applicants,” the report said. 

Recent homeowner Carlton Bashir said credit was the biggest obstacle in his buying process. “My credit was horrible for years,” he said, “I had to get that fixed before anyone would even approve me for a loan,” Bashir said. His experience reflects a reality for many when it comes to buying a home: the need to repair credit before being able to start the homebuying process. 

Phoenix Real Estate Agent, Nika Etheridge, also points to finances as a leading factor. “Many buyers struggle with down payments, credit card balances, income limits, etc., that may prevent them from being financially ready to buy a house,” Etheridge said,

“When I bought my home, I had to bring in far more cash than I anticipated because my loan amount did not fully cover the home I wanted,” she said. 

The gap in homeownership for Black residents is often tied to financial disadvantages and a lack of access to information, Etheridge said. “Many prospective buyers were to begin…the process may feel out of reach for some,” She said. Increasing awareness of available programs and clearer guidance could help more families prepare to buy, even if they are not immediately ready, she said. 

While the housing market has eased from the competitive pace of actually getting a house in the past few years, the factors shaping who can buy remain largely the same.