Diedre Willis

When we talk about homeownership in Charlotte, for many Black families, it is about providing stability, building wealth and creating a legacy.

Yet, for far too many, the dream feels out of reach.

The home ownership rate in Charlotte tells an interesting story. In 2022, 67% of White households in Mecklenburg County owned their home, compared to 40% of Black and 44% of Latine households, according to the 2023 Charlotte Mecklenburg State of Housing Instability & Homelessness Report.

In contrast, in the most recent Planning and Progress study from Northwestern Mutual, 75% of Black respondents agreed that homeownership is essential for building wealth.

As a financial advisor, I often meet families who work hard to purchase their first home only to realize they were not fully prepared for the costs that come after closing day. That’s why I talk about budgeting for both the front door and the back door. Getting the keys is the front door, but staying in the home for years to come is the back door and families need a plan for both.

When it comes to homeownership, there are three main challenges families must prepare for, and each one requires careful planning and the right resources. They are:

• Affording the upfront costs of the home
• Sustaining the property over time
• Protecting the investment

1. The Affordability Hurdle

For many families, the first barrier is affordability. Many residents in Charlotte are considered cost-burdened, meaning they spend too much of their income on rent. When so much of the monthly paycheck goes to housing, it leaves little room to save for a down payment or prepare for unexpected costs.

At the same time, many Black borrowers often face higher mortgage denial rates and less favorable loan terms. 

To overcome the affordability hurdle, families need to layer and leverage every resource available, from down payment assistance to property tax exemptions, rather than relying solely on savings. There are local programs that can provide support, sometimes offering tens of thousands of dollars in assistance, based on eligibility. For a clear roadmap on how to budget and navigate these programs, families can consult Northwestern Mutual’s Complete Guide to Buying a Home.

2. Planning for the Long Run 

It’s important for homebuyers to remember that closing on the home is only the first step. Families also need to budget for property taxes, insurance, maintenance and unexpected repairs.

When I work with families, we “stress-test” their plan. We look at what would happen if taxes increased, if interest rates go up, or if a major repair became necessary. This simple exercise allows them to understand that the goal is not just to buy a home but to stay in it for the long term. It is important to not exhaust savings for the down payment or closing costs. I generally recommended that 3-6 months of living expenses are still needed after purchasing your home.

3. Protecting Your Investment

As neighborhoods change and property values rise due to gentrification and development, it’s important for homeowners to protect themselves and their homes from potential cost increases. One proven strategy is to apply for property tax relief programs, exemptions or freezes. In Mecklenburg County, programs are available for senior citizens on a fixed income, those who are disabled and veterans living in a home that was adapted to fit their needs.  These critical programs provide a way for residents to stay rooted in communities they live in and protect their investments.

As Charlotte continues to grow and evolve, the barriers to homeownership are real, but so are the solutions. Financial planning, layered resources, and thoughtful budgeting strategies can help families not only get the keys - but keep them.

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