The COVID-19 pandemic, the economic crisis it caused and the nationwide equal justice protests have reminded us that racial economic inequality persists in our country. With unemployment impacting more than 40 million people and many states reopening their economies, we are now thinking about how to move beyond this crisis. Homeownership must be part of the plan. Low-income families and households of color have long faced many barriers to homeownership, the widespread gap in wealth and homeownership has not been clearer since the last recession. Amid the current crisis we must ask ourselves, are we doomed to repeat the same mistakes of the Great Recession?

Before the pandemic, the United States faced an extended, widespread housing affordability crisis, which left millions of families burdened by heavy costs. Our most recent Scorecard found that 28% of homeowners and 50% of renters were classified as “cost-burdened”--where housing expenses exceed 30% of household income and/or the homeowners risk foreclosure or homelessness if their income declines. Not only were many households unable to meet their housing expenses, but without extra funds they weren’t able to invest in health care and other necessities. Additionally, prior to the economic downturn, Blacks were 40% less likely to own their homes than Whites, a clear sign of the difficulties African American families faced in building wealth.

In the Great Recession, one-third of the homes that were foreclosed on were owned by Black and Latino homeowners. Black households were the hardest hit as the median net worth dropped by 53%. Many households of color had only recently begun to rebound from their losses and subprime mortgages when the economic disruptions following COVID-19 took hold.

The last decade has brought high rates of gentrification across the country, which has caused housing costs to rise significantly, especially in cities like New York, San Francisco, Los Angeles and Washington. None of them  are seeing a decrease in housing costs amidst the pandemic. The gap in homeownership is particularly stark in places of deep racial economic inequality, like Minneapolis, where Black homeownership lags more than 50 percentage points behind the White rate.

In the wake of disruptions caused by COVID-19, many households are again weighing whether they will be able to make rent or mortgage payments. Research shows homeowners who are behind in their mortgage payments are also more likely to be food insecure and to forego prescribed medications, compared to those who can continue to make payments.

Despite the grim outlook for when the COVID pandemic will end or when the economy will recover, we do know housing can lead the way. Our country has long seen homeownership as a pathway to economic stability and wealth-building. Over time, it is more affordable than rental housing. Homeownership can provide positive health outcomes, which can be extremely beneficial for low- and moderate-income (LMI) Americans and households of color. Research has identified four pathways that housing affects health: stability, quality and safety, affordability and neighborhood characteristics.

We need to continue helping families weather the pandemic and economic downturn. Passed in March, the Coronavirus Aid, Relief and Economic Security (CARES) Act allowed for a 60-day moratorium on foreclosures and evictions on federally backed mortgages. This was mainly beneficial to borrowers with single-family loans backed by Fannie Mae and Freddie Mac until June 30, helping more than 8.1 million homeowners weather the pandemic.

At Prosperity Now, we hope the next CARES Act will include explicit protections for homeowners of manufactured housing and borrowers with privately-held loans. Some cities and counties have passed foreclosure and eviction prevention moratoria to help families address the crisis. In previous recessions, housing played a key role in driving economic turnover. The low interest rates common during and following recessions incentivized home-buying and construction.

We need to reimagine how to make affordable homeownership a benefit that is available to all since it  can be the key to closing the wealth gap for people of color. The Movement for Black Lives advocates for an end to any housing restrictions that disadvantage people with a justice system history. We need to assure Blacks and other people of color, who have long felt left out of the housing system, that they will have access to low-cost mortgages, will be able to purchase without discrimination and will have the means to save emergency funds for unforeseen expenses. Finally, the federal government should provide assurances that it will offer assistance, if it is needed, in the next economic crisis.