Overview: A new report from the McKinsey Institute for Economic Mobility highlights the importance of quality, affordable housing as a gateway to economic opportunity, especially for Black families. The report shows that nearly 50% of Black families live in urban areas where rising prices and constrained supply are most prevalent, and they are more likely to live in inadequate housing. The report suggests that closing the nation’s housing gap would require an investment of $2.7 trillion, but it could generate nearly $2 trillion in GDP and create almost two million jobs.
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What if housing wasn’t just a roof over our heads—but a launching pad for opportunity, dignity and growth?
A new report from the McKinsey Institute for Economic Mobility shows that quality, affordable housing is still out of reach for millions of Americans—and for Black families—the burden is even heavier.
Historically, housing has been a gateway to economic opportunity. Increasingly, however, access to homeownership remains an economic barrier for far too many American families, and especially for Black families.
The upside to home ownership is enormous. In addition, closing the housing shortfall could generate nearly $2 trillion in Gross Domestic Product (GDP), create almost two million jobs, and free up hundreds of thousands of households—especially Black households—from cost-burdened living, according to the report.
Today, nearly 50 percent of Black families live in urban areas/megacities, “where rising prices and constrained supply” have been most prevalent, according to McKinsey. In addition, Black households are more likely than other races to live in inadequate housing.
The fact that housing is unaffordable for so many, coupled with a lack of savings, were identified in the report as the two most cited barriers to homeownership. Similarly, cost of living is the top reason for voluntary moves among Black Americans, according to a 2024 survey of thousands of American households.
The report stressed that addressing these and other entrenched challenges is necessary and presents the opportunity to create widespread economic and social benefits.
Facilitating improvements in housing stock, access and affordability will involve everything “from unlocking under-used land… to scaling modular home construction… to better shaping public-private partnerships,” the report stressed. “[T]his is about bold, inclusive change.”
The report concluded that closing the nation’s housing gap would require an investment of $2.7 trillion but it could generate nearly $2 trillion in GDP and create nearly two million jobs.
Follow this link: Investing in Housing: Unlocking Economic Mobility for Black Families and All Americans to view the report in its entirety.