The Urban Institute's report, “The Great Inequality Transfer: Unpacking the Relationship between Homeownership and Intergenerational Wealth Transfer,” explores how homeownership drives the expectation of leaving an inheritance, especially for Black and Hispanic households. However, systemic barriers like discriminatory housing policies and limited access to credit have historically prevented these groups from building wealth, reinforcing the racial wealth gap across generations.
The report finds that receiving an inheritance significantly boosts the chances of homeownership, even when the inheritance is modest, facilitating wealth-building. It also highlights the cyclical nature of wealth transfer, where families without generational wealth face greater difficulties in becoming homeowners. While homeownership is critical for wealth accumulation, it alone cannot resolve entrenched inequalities. Comprehensive policy interventions are needed to expand access to homeownership and address systemic inequities.
Overall, the literature on homeownership, wealth transfers, and racial inequality reveals the intricate factors behind persistent wealth disparities. Although homeownership is a key wealth-building tool, ongoing systemic barriers continue to limit access for marginalized communities. Addressing these challenges requires a broad policy approach that tackles both housing and economic reforms to promote equity.