Black and Latino Real Estate Developers Struggle to Get Funding

The New York Times (03/03/2023)
  • Social-impact researchers discovered that 111,000 out of 112,000 US real-estate developers are white-owned.
  • Of the 383 top real-estate developers ($50M+ annual revenue), one is Latino-owned and none are Black-owned.
  • Most real-estate developers obtain seed (launch) capital from family and friends.
  • Median net-worth of White families ($188,200) is significantly greater than Black ($24,100) and Latino ($36,200) families.
  • When given the opportunity, research shows Black and Latino developers tend to outperform.
  • However, these excess returns could derive from banks only extending loans to highly profitable minority-owned projects.