News
FOR IMMEDIATE RELEASE
April 1, 2024
Recent National Association of Realtor Settlement Will Set Back Black Homeownership
Once again, we, the Consolidated Board of Realtists believe The National Association of Realtors (NAR) is on the wrong side of history. Just as they stood against the 1968 Fair Housing Act, Friday’s settlement stands as an affront to Black and other underserved homebuyers and the predominantly minority real estate agents who represent the homebuyers.
“The biggest impediment to Black homeownership is down payment and closing cost funds. This settlement serves to shift the buyer’s agent commission payment directly to the homebuyer when industry tradition and practice is that the listing agent shares the selling commission with the agent who is helping the homeowner sell the home. This change is devastating to Black homebuyers,” said Mark Alston, Legislative Committee Chair, Consolidated Board of Realtist.
For Black homebuyers, this is bad news. In this country, the average net wealth of Black households is $27,000 which represents over nine times less than the $250,000 average net wealth of White households. Black families have 68% less in liquid assets than their White counterparts along with fewer opportunities to receive financial assistance from family members. Down payment and closing costs are hard enough of to save. Adding the buyer’s agent commission to the ledger puts homeownership out of reach.
According to The National Association of Realtors the average Black Realtor earns $16,700 per year which is three times less than the $49,400 a White Realtor averages. Historically, Black people are buyers’ agents. U.S. White homeownership is almost 74%, Black homeownership is 45%. The opportunity to be the seller’s agent is less for Black agents just based upon the overall ownership percentages.
“We believe this settlement will most assuredly have a racially disparate impact upon Black homeownership,” said Lyric Armstrong, 44th President, Consolidated Board of Realtists, Los Angeles, CA.
The American dream of homeownership is not dead in the Black community, it just keeps getting pushed farther away. We are disappointed the NAR did not fight for us. It would have been better to lose with the dignity of being right and representing all of your membership, than to settle in shame.
Contact: Mark Alston, Legislative Committee Chair Lyric Armstrong, President
(310) 908-0070 (213) 444-6336
Malston55@yahoo.com Lyric@LJAestates.com
MESSAGE FROM THE PRESIDENT
