Is the Housing Market for Black NJ Residents is Going Up in Smoke?

Sean Burrowes

The Great Lockout: How a Shifting Housing Market Threatens to Widen New Jersey’s Racial Wealth Gap

Is the housing market for black New Jersey residents going up in smoke?

Last month, we talked about the urgent October 31, 2025, deadline for New Jersey’s ANCHOR program—a critical lifeline offering up to $1,750 in property tax relief for our state’s homeowners and renters. That program is about easing the immediate, crushing weight of housing costs in the Garden State. But as we fight for every dollar of relief, a new storm is gathering on the national horizon, and its winds are blowing directly into the heart of our communities, threatening to turn the dream of homeownership into an impossible fantasy for a new generation.

Two recent reports have sent a tremor through the real estate world, and for Black families in New Jersey, they are nothing short of a five-alarm fire. A new analysis highlighted by Fortune and the National Association of Realtors’ (NAR) 2025 “Generational Trends” report reveal a startling power shift: Baby Boomers, for the first time in years, have overtaken Millennials as the largest group of homebuyers in America.  

This isn’t just a statistical curiosity. It’s a profound realignment of the market, driven by older, wealthier, and predominantly white buyers who are increasingly paying in all-cash deals. For our young people, for our families striving to build a foothold of wealth, this trend represents a great lockout. In a state already defined by a staggering racial wealth gap, this shift threatens to slam the door on homeownership and deepen the economic divide for generations to come.  

The National Picture: A Market Not Built for Us

Before we can understand the impact on New Jersey, we have to grasp the national landscape painted by these reports. The data is stark:

This data tells a clear story: the American housing market is increasingly becoming a marketplace for the already-housed and the already-wealthy. For those starting out, especially Black families who are more likely to be first-time buyers, the entry barriers are becoming insurmountable walls.   

The Impact on Black New Jersey: An Unjust Burden Made Heavier

In New Jersey, these national trends are not just statistics; they are gasoline poured on the fire of existing inequality. Our state is already a tale of two realities. The median household wealth for a white family in New Jersey is a staggering $662,500, while for a Black family, it is less than $20,000. This chasm is built on a foundation of unequal access to homeownership—the primary engine of wealth creation in America.   

In the Garden State, 76.9% of white households own their homes. For Black households, that number is a mere 41%.Now, layer the new market dynamics on top of this reality:   
  1. The Competitive Squeeze: When cash-flush Boomers dominate the market, they drive up prices and shut out buyers who need financing. For Black families in New Jersey, who already face mortgage denial rates nearly double those of white applicants (21% vs. 11%), this competition is devastating. It means fewer accepted offers, more heartbreak, and a dream deferred indefinitely.  
  2. Eroding the Path to Wealth: The collapse of the first-time homebuyer market is a direct assault on the primary pathway for Black families to begin building generational wealth. Every family locked out of homeownership is another family prevented from closing the wealth gap. This isn’t a temporary setback; it’s a long-term structural barrier being reinforced in real-time.
  3. The Rise of Multigenerational Living: The NAR report shows a significant increase in multigenerational homebuying, particularly among Gen X (ages 45-59), who are often “sandwiched” between caring for aging parents and supporting adult children. While this can be a source of strength and resilience in our community—a way to pool resources and share caregiving responsibilities—it is also a symptom of economic distress. It highlights that for many, the traditional single-family homeownership dream is no longer viable alone.   

This new market reality, combined with New Jersey’s notoriously high property taxes and the systemic “assessment gap” that forces Black homeowners to pay 10-13% more in taxes for the same services, creates an environment of extreme economic pressure. It makes keeping a home more difficult and buying one nearly impossible.  

A Community Blueprint: Short-Term Actions and Long-Term Strategies

We cannot stand by and watch the door to economic mobility be bolted shut. Responding to this crisis requires a coordinated, two-pronged approach: immediate actions to empower our families today and long-term strategies to dismantle the systems that hold us back.

Short-Term Next Steps: Fortifying Our Families Now

  1. Master the System: Knowledge is power. We must aggressively pursue financial literacy and homebuyer education. Organizations like the Urban League of Essex County and HUD-approved housing counseling agencies such as St. Joseph’s Carpenter Society and Neighborhood Housing Services of Camden offer critical workshops on credit repair, budgeting, and navigating the mortgage process.  
  2. Unlock Every Dollar of Assistance: New Jersey offers powerful tools to help first-time buyers overcome the down payment hurdle. The NJHMFA Down Payment Assistance Program provides up to $15,000, and the First Generation Down Payment Assistance Program adds another $7,000 for those whose parents do not own a home. This can be a game-changer, and we must ensure our community knows these programs exist and how to access them.  
  3. Fight for Fair Value: Appraisal bias robs Black homeowners of billions in equity. New Jersey recently passed a landmark law requiring anti-bias training for appraisers and prohibiting discrimination. We must be vigilant. Challenge low appraisals through the Reconsideration of Value (ROV) process and report suspected discrimination to the New Jersey Division on Civil Rights.  
  4. Maximize Existing Relief: Programs like ANCHOR are essential. By helping current homeowners and renters manage the tax burden, these funds can be redirected into savings for a down payment, home repairs, or other wealth-building investments.

Long-Term Strategies: Rebuilding the Foundation

  1. Champion Policy Reform: We must organize and advocate for systemic change. This includes pushing for stronger inclusionary zoning ordinances, like the one in Newark, which require developers to set aside affordable units in new projects. It also means demanding comprehensive property tax reform that eliminates the racialized assessment gap.  
  2. Embrace Collective Ownership: The traditional homeownership model is not the only path. Community Land Trusts (CLTs) are a powerful tool to create permanently affordable housing and give communities control over their land. By separating the ownership of the land from the ownership of the house, CLTs prevent displacement and ensure that housing remains affordable for future generations. Supporting and expanding organizations like the Essex Community Land Trust is a vital long-term strategy.   
  3. Build Political Power: The New Jersey Wealth Disparity Task Force has acknowledged the deep, historical roots of these inequities. We must hold our elected officials accountable for implementing bold, targeted solutions that go beyond task forces and reports. This means advocating for policies that directly invest in Black homeownership, support Black-owned businesses, and create pathways to high-paying jobs.  

The road ahead is not easy. The forces shaping this housing market are powerful and deeply entrenched. But we are a community defined by resilience, not despair. By arming ourselves with knowledge, leveraging every available resource, and organizing for systemic change, we can fight back against this great lockout and build a future where the promise of homeownership is a reality for all of us.

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