Only 15% of Zillow home listings were affordable for the typical Black household in the Philly area in 2024
But more than half of homes listed for sale on Zillow in 2024 were affordable for the typical white household in the Philadelphia area. The affordability gap was larger here than nationally.
Only about one in seven home listings in 2024 was affordable for the typical Black household in the Philadelphia area, according to an analysis by Zillow.
On the other hand, more than one in two homes listed for sale on Zillow in 2024 was affordable for the typical white household in the Philadelphia metropolitan area.
That affordability gap in home listings was larger in the Philadelphia area than in the United States as a whole, according to Zillow. Nationally, about 18% of listings were affordable for households making the median Black household income, and 38% were affordable for households making the median white household income.
That’s compared to roughly 15% and 54%, respectively, in the Philadelphia region. So the gap was fueled by a higher share of white households here than nationally being able to afford homes.
Rising housing costs are more likely to be a barrier to home ownership for lower-income households. Housing payments are considered affordable if they cost no more than 30% of a household’s income. Zillow included the mortgage, taxes, insurance, and maintenance in its calculations to determine whether listings were affordable.
The median incomes of Black households nationally and in the region were about the same last year — $54,896 and $54,482, respectively. But median home values and monthly housing payments were lower nationally than in the Philadelphia region — by roughly $5,400 and $130, respectively.
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Overall, households across the region needed to make about $5,200 more per year than households nationally to afford housing payments.
In the Philadelphia area, the typical monthly mortgage payment in December was $2,511, and households needed to make $100,434 to comfortably afford that. But the median household income for the area in 2024 was $94,463.
Neither the typical white household nor the typical Black household made enough to afford to buy a median-priced home in December. But the typical white household’s income was closer to what was needed. These households in the Philadelphia area made a median of $83,898, while Black households made a median income of $54,482 — a little more than half what was needed.
Zillow found that the St. Louis metropolitan area is the most affordable market for typical Black households. They could afford slightly more than 30% of home listings in 2024. In second and third place were Birmingham, Ala., and Memphis.
The least affordable housing markets for Black households were on the West Coast. In Los Angeles, only 0.4% of home listings in 2024 were affordable for the typical Black household.
But nationally, the share of Black households buying their first home has increased and was around 63% in 2024, according to an earlier Zillow survey.
“Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth,” Zillow senior economist Orphe Divounguy said in a statement. “While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits, and flexible lending options have helped increase access.”