For decades, real estate has been heralded as the gold standard of wealth building in the Black community. Buy a home, rent it out, and watch your equity grow while your tenants pay down your mortgage. But in 2025, that once-straightforward formula isn’t adding up quite the same way.  

Between skyrocketing home prices, interest rates that have doubled since 2021, and mounting maintenance costs, today’s real estate landscape has become more of a minefield than a money move for many aspiring investors—especially Black millennials and Gen Zers looking to build generational wealth. 

So what’s really going on? And more importantly, where should you be investing now?

National home prices have reached historic highs, with the median U.S. home price hovering around $400,000. In major metros like Atlanta, Charlotte, and Houston—once considered havens for Black homeownership—prices have surged, pushing many would-be buyers out of the market entirely.

“Noble laureate economist and Yale Professor Robert Shiller makes a compelling case that real estate, particularly residential homes, is a much inferior investment when compared to stocks,” Robert R. Johnson, professor of finance, Creighton University tells Forbes in a recent interview. “Shiller finds that on an inflation-adjusted basis, the average home price has increased only 0.6% annually over the past 100 years.”

For Black investors, who already face racial disparities in lending and appraisals, the hurdles are even higher. According to a 2023 report by the Brookings Institution, homes in Black neighborhoods continue to be undervalued by tens of thousands of dollars compared to similar homes in white neighborhoods.

There’s also been a cultural shift. Once seen as a stepping stone to homeownership, renting is now a lifestyle choice for many financially savvy professionals.

“A few years ago, my wealthy clients would have laughed at the idea of renting a home instead of buying. Renting was not for people like ‘them’, Mari Adam, personal finance expert, said in a 2024 social media post. “My, how things have changed. Now there are more millionaire renters than ever before. Renting looks cheaper than buying in all top 50 metro areas,” she continued, pointing to a recent report that followed the trend.

The outlet highlighted high networth individuals that had various reasons for choosing to buck the real estate system and instead of investing or purchasing a home for themselves, they leaned into the renter’s market. 

““In terms of price for value, the supply is close to zero,” Gerge Goognin, a millionaire startup founder told the WSJ. The outlet said that instead of purchasing anything, he is renting a three-bedroom apartment in a luxury Manhattan high-rise for about $19,000 a month. 

According to the outlet, between 2018 and 2022, the share of households with annual incomes of more than $750,000 that rented rose to 10.5%, according to census data from IPUMS at the University of Minnesota analyzed by The Wall Street Journal. These rates are the highest level since the survey began in the mid-2000s. 

Today’s wealth builders are thinking beyond brick and mortar. From high-yield savings accounts and REITs (real estate investment trusts) to fractional shares of fine art, there are more accessible—and often more profitable—ways to invest. Data from real estate data hub Nareit, 145 million Americans are invested in REIT stocks, as of 2020. Black women are cashing in on the movement.

Ashley M. Fox, former Wall Street analyst and founder of personal finance platform Empify says REITs changed her outlook on investing. 

“REITs have changed my life,” Fox shared in a TikTok video. “They gave me the opportunity to recognize that you don’t have to have a lot of credit, make a lot of money, dedicate a bunch of time, or even be an expert to invest. “You are just partnering and owning stock.” 

She goes on to explain what owning a REITs means and how investors get a return on their investment. 

“When you invest in a REIT, you’re owning stock in a company that owns malls, office buildings or commercial real estate for example. They’re looking to have really good tenants and strong leases that produce consistent income. REITs were created for the everyday person to still build wealth and get exposure to real estate.”

Black women especially are leaning into the stock market like never before. Platforms like Public, SoFi, and even TikTok finance creators are demystifying investing for a new generation. According to a 2024 Essence + Fidelity survey, 67% of Black women ages 25–40 reported investing in stocks, mutual funds, or ETFs, up from just 43% five years ago.

Not necessarily. Real estate still has a place in a diverse portfolio—but it might not need to be your starting point.

Some experts say that if you have the cash, the credit, and the patience to weather the ups and downs, it can still be worthwhile, but it’s not the only way to win anymore. 

Overall, the game has changed. Wealth building is no longer one-size-fits-all, and the new rules are all about flexibility, education, and alignment with your personal goals.

So whether you’re investing in stocks, starting a business, or even launching a side hustle—know that wealth is still within reach. Just don’t be afraid to rewrite the playbook.