CFA and NUL Report: Addressing Homeownership Barriers for First-Time Buyers
The Consumer Federation of America (CFA) and the National Urban League (NUL) have released a critical report addressing the 2024 settlement by the National Association of Realtors (NAR), valued at $418 million. Entitled "Escalating Housing Costs, Hidden Listings," the report examines ongoing challenges for first-time homebuyers, spotlighting nine primary market issues. Despite expectations, the NAR settlement has not substantially reduced real estate costs or improved transparency, with first-time buyers still grappling with affordability issues and the increasing prevalence of "pocket listings" obstructing fair housing access.
Marc H. Morial, President and CEO of the NUL, emphasized the enduring complexities and growth of barriers to Black homeownership. Pocket listings, together with declining housing counseling services, are raising concerns over potential redlining. Morial underscored the necessity of ensuring equitable access to homeownership, crucial for wealth accumulation.
The report's findings are grounded in extensive research, including a survey of 223 housing counselors across 37 states and nine detailed interviews, conducted in mid-2025. Despite funding reductions, housing counselors remain vital, offering guidance to first-time homebuyers and delivering homebuyer education programs, underscoring the need for continued support.
Sharon Cornelissen, Director of Housing at CFA, remarked on the lack of impactful changes since the NAR settlement. The altered Realtor commission rules have not resulted in cost reductions, nor have they facilitated market entry for first-time buyers. The rise in pocket listings and potential funding cuts for housing counselors present new challenges.
Recommendations for Policy Enhancements
The report calls for policy measures to boost transparency in Realtor fees and housing listings, while enhancing support for prospective homebuyers. Recommendations include the Federal Housing Finance Agency (FHFA) to enhance brokerage fee data transparency via the Home Mortgage Disclosure Act (HMDA) database and collaboration with Fannie Mae and Freddie Mac. Moreover, State Attorneys General and Fair Housing Centers should monitor brokerages for discriminatory pocket listing practices. The report also appeals to the Department of Housing and Urban Development (HUD) to ensure full funding and training for housing counselors, continuing their pivotal role in navigating the intricate real estate market for first-time buyers.