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Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap

By Nate Johnson The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces […]
The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

Published

2 years ago

October 28, 2023

Chicago Defender Staff

By Nate Johnson

The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces – in which real estate agents share all listings openly and transparently with all other agents – help foster healthy competition.

Meanwhile, compensation rules that allow a home buyer’s real estate agent to be paid out of the proceeds from the home sale – instead of out of the buyer’s pocket upfront – help expand access to homeownership and increase the pool of buyers for sellers’ homes.

However, the pending lawsuits could upend these vital local marketplaces. The suits seek to require buyers to pay for the services of their real estate agent directly, rather than having the buyer’s agent fee paid by the seller’s agent at the time of closing. If successful, such a verdict would significantly increase the transaction costs of buying a home – with major repercussions for local economies.

When the commission is shared between the seller’s broker and the broker who brings the home buyer, it gives first-time and low-and middle-income buyers a better shot at affording a home. If buyers had to pay the agent themselves, it would make it harder for many, especially first-time, minority and low/middle-income buyers, to afford a home because they would need more money upfront for the down payment, closing costs and agent fees.

Why it matters

Today, at a time when current high mortgage rates and increasing home prices are keeping aspiring homebuyers on the sidelines, additional out-of-pocket fees would only push homeownership further out of reach for many. If our commission model were to significantly change and buyers were forced to begin paying their agent out-of-pocket, it would create an additional barrier to homeownership for Black, first-time homebuyers who may already struggle to afford a down payment, ultimately worsening the racial homeownership gap across America.

Legal implications and the impact on Black, first-time homebuyers

Black first-time homebuyers have a 50% chance of being a first-time, first-generation homebuyers. This means that they may not have family and friends to rely on for homeownership advice. These buyers critically need a real estate agent to help them navigate the homebuying process since their parents may not be able to offer financial assistance or guidance. Unfortunately, if the lawsuits are successful for the plaintiffs, Black homebuyers will be the people who are most vulnerable to not having representation throughout the homebuying process.

Requiring buyers to pay their agent out-of-pocket would require an estimated $6,765 in additional assets to purchase a $250,000 home. The burden of this commission payment in addition to a down payment will only push homeownership further out of reach for income-restrained buyers and discourage them from seeking professional representation due to the added cost of working with a real estate agent.

At the crux of the lawsuit, plaintiffs argue that because listed-for-sale homes are publicly available online, buyers don’t need a real estate agent, which is a shortsighted opinion. Anyone who has purchased a home for the first time knows it often isn’t a straightforward undertaking – things don’t always appear as they seem – and the process can be overwhelming without support.

There is a lot more that goes into purchasing a home than finding a property you like, and it is one of the most significant – if not the greatest – financial decisions of one’s lifetime. That is why it’s crucial to have professional representation.

History shows that consumers who do not have professional representation always suffer the most. Looking back at the 2008 recession, people of color were disproportionately affected, in part due to lenders who offered predatory loans. Predatory lenders specifically targeted these communities because they were more likely to not have professional representation.

Many people received predatory loan products that they did not need, which ultimately led to more foreclosures and a decline in homeownership. If history were to repeat itself and more people choose to forgo professional representation due to commission fees, we could be looking at a similar outcome in the future.

Worst Case Scenario

So, what’s the worst that could happen? Well, a lot. If the trial verdict results in homebuyers having to pay commissions out-of-pocket, it would significantly increase the transaction costs of buying a home – with major repercussions for local economies:

Income-restrained buyers will be more likely to forgo professional representation when making the biggest financial decision of their lives, setting them up for failure.
The rate of homeownership in the Black community will remain stagnant or even worse, it will decline.
Significantly increasing the up-front transaction costs of buying a home would deter some potential buyers and slow the pace of home sales, at a time when higher interest rates have already chilled the market.
Fewer home sales, which would hurt demand for local businesses adjacent to home buying: appraisers, lenders, home inspectors, contractors and service providers, home improvement stores, and others.

The magnitude of this trial and the devastating impact it could have on aspiring homebuyers cannot be understated. If the plaintiffs were to win, the greater economy would be largely impacted and further divide the racial wealth gap in America.

NAR data shows that significantly fewer low-income households and households of color own their home and are able to build wealth compared to other income and racial/ethnic groups. There should be no reason why we adopt compensation rules that would further exacerbate this issue.

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap appeared first on Chicago Defender.

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

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Remembering George Floyd

Published

3 days ago

May 25, 2025

Oakland Post

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OP-ED: Oregon Bill Threatens the Future of Black Owned Newspapers and Community Journalism

BLACKPRESSUSA NEWSWIRE — Nearly half of Oregon’s media outlets are now owned by national conglomerates with no lasting investment in local communities. According to an OPB analysis, Oregon has lost more than 90 news jobs (and counting) in the past five years. These were reporters, editors and photographers covering school boards, investigating corruption and telling community stories, until their jobs were cut by out-of-state corporations.

Published

4 days ago

May 23, 2025

Oakland Post

By Dr. Benjamin F. Chavis, Jr.
President and CEO, National Newspaper Publishers Association

For decades, The Skanner newspaper in Portland, the Portland Observer, and the Portland Medium have served Portland, Oregon’s Black community and others with a vital purpose: to inform, uplift and empower. But legislation now moving through the Oregon Legislature threatens these community news institutions—and others like them.

As President and CEO of the National Newspaper Publishers Association (NNPA), which represents more than 255 Black-owned media outlets across the United States—including historic publications like The Skanner, Portland Observer, and the Portland Medium—l believe that some Oregon lawmakers would do more harm than good for local journalism and community-owned publications they are hoping to protect.

Oregon Senate Bill 686 would require large digital platforms such as Google and Meta to pay for linking to news content. The goal is to bring desperately needed support to local newsrooms. However, the approach, while well-intentioned, puts smaller, community-based publications at a future severe financial risk.

We need to ask – will these payments paid by tech companies benefit the journalists and outlets that need them most? Nearly half of Oregon’s media outlets are now owned by national conglomerates with no lasting investment in local communities. According to an OPB analysis, Oregon has lost more than 90 news jobs (and counting) in the past five years. These were reporters, editors, and photographers covering school boards, investigating corruption, and telling community stories, until their jobs were cut by out-of-state corporations.

Legislation that sends money to these national conglomerate owners—without the right safeguards to protect independent and community-based outlets—rewards the forces that caused this inequitable crisis in the first place. A just and inclusive policy must guarantee that support flows to the front lines of local journalism and not to the boardrooms of large national media corporations.

The Black Press exists to fill in the gaps left by larger newsrooms. Our reporters are trusted messengers. Our outlets serve as forums for civic engagement, accountability and cultural pride. We also increasingly rely on our digital platforms to reach our audiences, especially younger generations—where they are.

We are fervently asking Oregon lawmakers to take a step back and engage in meaningful dialogue with those most affected: community publishers, small and independent outlets and the readers we serve. The Skanner, The Portland Observer, and The Portland Medium do not have national corporate parents or large investors. And they, like many smaller, community-trusted outlets, rely on traffic from search engines and social media to boost advertising revenue, drive subscriptions, and raise awareness.

Let’s work together to build a better future for Black-owned newspapers and community journalism that is fair, local,l and representative of all Oregonians.

Dr. Benjamin F. Chavis Jr., President & CEO, National Newspaper Publishers Association

Oakland Post

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Hate and Chaos Rise in Trump’s America

BLACKPRESSUSA NEWSWIRE — Tactics ranged from local policy manipulation to threats of violence. The SPLC documented bomb threats at 60 polling places in Georgia, traced to Russian email domains.

Published

5 days ago

May 23, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The Southern Poverty Law Center has identified 1,371 hate and antigovernment extremist groups operating across the United States in 2024. In its latest Year in Hate & Extremism report, the SPLC reveals how these groups are embedding themselves in politics and policymaking while targeting marginalized communities through intimidation, disinformation, and violence. “Extremists at all levels of government are using cruelty, chaos, and constant attacks on communities and our democracy to make us feel powerless,” said SPLC President Margaret Huang. The report outlines how hard-right groups aggressively targeted diversity, equity, and inclusion (DEI) initiatives throughout 2024. Figures on the far right falsely framed DEI as a threat to white Americans, with some branding it a form of “white genocide.” After the collapse of Baltimore’s Francis Scott Key Bridge, a former Utah legislator blamed the incident on DEI, posting “DEI = DIE.”

Tactics ranged from local policy manipulation to threats of violence. The SPLC documented bomb threats at 60 polling places in Georgia, traced to Russian email domains. Similar threats hit Jewish institutions and Planet Fitness locations after far-right social media accounts attacked them for trans-inclusive policies. Telegram, which SPLC describes as a hub for hate groups, helped extremists cross-recruit between neo-Nazi, QAnon, and white nationalist spaces. The platform’s lax moderation allowed groups like the Terrorgram Collective—designated terrorists by the U.S. State Department—to thrive. Militia movements were also reorganized, with 50 groups documented in 2024. Many, calling themselves “minutemen,” trained in paramilitary tactics while lobbying local governments for official recognition. These groups shared personnel and ideology with white nationalist organizations.

The manosphere continued to radicalize boys and young men. The Fresh & Fit podcast, now listed as a hate group, promoted misogyny while mocking and attacking Black women. Manosphere influencers used social media algorithms to drive youth toward male-supremacy content. Turning Point USA played a key role in pushing white nationalist rhetoric into mainstream politics. Its leader Charlie Kirk claimed native-born Americans are being replaced by immigrants, while the group advised on Project 2025 and organized Trump campaign events. “We know that these groups build their power by threatening violence, capturing political parties and government, and infesting the mainstream discourse with conspiracy theories,” said Rachel Carroll Rivas, interim director of the SPLC’s Intelligence Project. “By exposing the players, tactics, and code words of the hard right, we hope to dismantle their mythology and inspire people to fight back.”

Click here for the full report or visit http://www.splcenter.org/resources/guides/year-hate-extremism-2024.