Philadelphia is a city of rich history, diverse communities and tremendous potential. However, like many cities across the U.S., it has faced challenges overcoming decades of systemic inequality, particularly in the area of home ownership. For many, the dream of owning a home — a cornerstone of financial stability and wealth-building — remains out of reach due to a variety of factors like soaring housing prices and difficult credit standards.
Why home ownership matters
Home ownership is about building long-term financial security in addition to having a place to live and raise a family. It serves as a stepping stone to creating generational wealth, providing stability, and giving families the ability to invest in their future. Home ownership offers unique wealth-building opportunities, from the accumulation of equity and property value appreciation to tax advantages and the potential to pass down an asset to future generations. These benefits allow families to create a foundation of financial resilience that can be carried forward, helping to close wealth gaps over time.
Yet, as recorded in 2022 in Philadelphia, less than 50 percent of Black and Hispanic households own their homes, compared to 75 percent of White households, reflecting a deep disparity in access to homeownership. Philadelphia also faces broader challenges when it comes to housing affordability. As of this year, the median home price in the city is about $222,000, while the median household income is about $60,000. This gap makes it difficult for many families to afford a home, especially those from underrepresented or low-income communities.
Taking action for change
Studies show that nearly one in four households in low-income neighborhoods across the U.S. are “unbanked” or “underbanked,” highlighting the critical need for accessible financial support. It is critical to the city’s future that individuals have access to affordable mortgages, guidance on financial planning, and the support needed to achieve their homeownership goals.
Financial institutions across the country are investing in initiatives that enhance financial literacy, recognizing it as a foundational element in building wealth and long-term stability. These programs often include budgeting workshops, credit management courses, and home ownership seminars — tools that can empower individuals to make informed decisions and navigate the home-buying process with confidence. By helping people understand the financial system and how to use it to their benefit, these efforts contribute to more equitable access to wealth-building opportunities.
As not-for-profit institutions, credit unions like Citadel are uniquely positioned to support the financial well-being of their members and the communities they serve. Credit unions prioritize people over profit, reinvesting earnings to benefit members and addressing community needs. This approach enables credit unions to play a vital role in fostering economic stability at the individual level and creating pathways to wealth-building through initiatives like affordable home ownership programs.
It is critical to the city’s future that individuals have access to affordable mortgages, guidance on financial planning, and the support needed to achieve their homeownership goals.
By focusing on member needs across the spectrum, including access, financial education, and community resources, credit unions work to ensure that more individuals and families — especially those historically excluded from homeownership — can achieve long-term financial security and stability.
This work is grounded in a shared philosophy of accountability, transparency and a commitment to the communities served. With a focus on removing barriers and expanding access, credit unions are contributing to a more inclusive and resilient financial landscape — one that can help close home ownership gaps and foster lasting economic growth.
Real-world success stories continue to underscore the value of these efforts. We’ve been fortunate to see firsthand that some first-time buyers have transitioned from attending educational events to closing on their first homes within a few months — empowered by access to financial tools, real estate guidance, and tailored support.
Others have benefited from one-on-one coaching to reduce debt, improve credit, and ultimately qualify for mortgage rates they didn’t think were within reach. These examples demonstrate the tangible impact financial literacy and support services can have on increasing homeownership, especially for those navigating the process for the first time.
A Vision for the city we love
Philadelphia has the potential to be a model for how cities across the country can address inequities in home ownership. Tackling this challenge requires a collaborative effort among financial institutions, community leaders, and policymakers to expand access and create more pathways for people in underserved communities to own homes.
The ultimate goal is clear: helping more individuals and families achieve the dream of home ownership — and with it, greater economic opportunity and stability. As credit unions and other mission-driven organizations continue to advance this work, they can set an example for how the financial industry as a whole can play a role in building a more equitable, prosperous future for all.
Bill Brown is CEO of Citadel Credit Union, an 80-year-old nonprofit banking institution.
The Citizen welcomes guest commentary from community members who represent that it is their own work and their own opinion based on true facts that they know firsthand.
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