Employees from marginalized communities are struggling to buy a home. Better benefit solutions can help

• Key Insight: Discover how employer benefits and tech can close structural homeownership gaps for marginalized workers.
• What's at Stake: Mortgage access disparities risk workforce instability and regulatory scrutiny for employers.
• Forward Look: Expect expanded employer homebuying benefits and flexible PTO emerging as retention strategies.
• Source: Bullets generated by AI with editorial review

The process of buying a home can be grueling, but often especially so for marginalized communities such as women and people of color facing significant challenges compared to other homebuyers. 

Discrimination based on sex and familial status are among the most common fair housing complaints filed with federal agencies, according to data from the National Fair Housing Alliance, along with discrimination based on disability and race. And while creating a more equitable landscape is a heavy lift, employers could be doing their part by providing better, more comprehensive support through benefits and culture. 

"We know that owning a home one day is a great way to long-term, generational wealth," said Landy Liu, CEO of Foyer, a fintech company that provides specialized savings and planning resources for prospective homebuyers. "However, low to moderate income Americans and women have just been disadvantaged historically in this sector."

Read more: A new partnership is making homeownership an employee benefit

Driving much of that discrepancy, he explained, is the existing gender pay gap. Currently, women are still being paid roughly 82 cents to the dollar for the same jobs as men, according to recent data from the Pew Research Center. In addition, a survey on credit denials conducted by Bankrate found that women — particularly those who are single or women of color — hold fewer assets and greater debts, which can lower their likelihood of being approved for loans or getting the best loan terms.

Not to mention, Liu said, women and marginalized groups make up a large share of workers in many industries that were hardest hit by the pandemic, such as retail and food service, and they have experienced a slower economic recovery. Exacerbating that issue further, childcare responsibilities can both limit paid working hours and bring additional expenses for many women. 

This has been the case for Lauren Schneider, the head of brand communications at HR and benefits software company Compt, who is currently attempting to buy a house as the breadwinner in a single-income household and mother of five. 

"I didn't think it would be this hard," she said. "I assumed that if we did everything right, saved responsibly, got pre-approved, worked with a good agent, and made reasonable offers we'd eventually get a house. That's the story you're told. Work hard, follow the steps, get the thing. What nobody tells you is that the deck is stacked in ways that have nothing to do with how prepared you are."

Read more: Mortgage benefits are the new 'must-have' for Gen Z employees

Even though she receives a lot of support from her husband, the emotional toll of navigating the purchasing process has only made the possibility of owning her own home seem more unrealistic. 

"I can't get attached anymore — I've trained myself not to," she said. "Because the letdown of losing house after house does something to you. You stop letting yourself want things and that's a strange place to exist."

Holistic homebuying benefits

 
Leaders can play a more active role in preventing employees like Schneider from getting discouraged, Liu said. For example, Foyer is a portable, app-based platform that allows employees to create and manage homeownership savings goals directly through the company. Users can set and adjust goals based on where and when they want to buy a home, and the platform provides personalized guidance on how much they need to save for a down payment and other home-buying costs. 

Another tech tool isn't always needed to improve outcomes either, Schneider said. Better, more expansive PTO policies can also make a significant change. At Compt, she's been able to step away for a few hours or take some time off last minute for a quick open house or showing.

Read more: HomeVest is helping employees save for their first home

"Employees shouldn't need to have a private wealth manager tell you how to negotiate a mortgage rate or have a parent that's bought multiple properties or vacation homes to give them advice," Liu said. "[Benefits] can help you level the playing field and make the experience accessible to everyone."

The most valuable thing my employer can give their people during the homebuying process isn't monetary, according to Schneider. Flexibility and innovative platforms and solutions are just as, if not more, useful, she said, and it doesn't get talked about enough in the benefits conversation.

"[We need] a culture where employees don't have to choose between being present for major life moments and being present for work," Schneider said. "The homes don't wait. The offers don't wait. The ability to move quickly and do it without having to apologize, that's the benefit that would always move the needle for me."