Research Finds Racial Disparities in Energy Insecurity Among Homeowners

By Naiya Oden, NLIHC Research Intern 

An article published in Housing Policy Debate titled “Racial and Ethnic Disparities in the Relationship Between Homeownership, Income, and Energy Insecurity” examines how homeownership, income, and race intersect to shape energy insecurity in the United States. While homeownership is often viewed as a means to economic security and wealth building, the authors found that these benefits are not experienced equally across racial and ethnic groups. Low-income Black homeowners were more likely to experience energy insecurity than Black renters and significantly more likely to experience hardship than white homeowners with similar incomes. 

The authors wanted to determine whether homeownership provides protection against energy insecurity for all households. The study defines energy insecurity as the inability to meet household energy needs and can include receiving utility shut-off notices, keeping a home at unhealthy temperatures, or sacrificing necessities such as food and medicine to pay energy bills. Previous research has shown that Black and Hispanic households experience excessively high rates of material hardship, including challenges paying utility bills and maintaining safe housing conditions. Given that Black and Hispanic households have historically experienced barriers to home repair financing and access to safe, quality housing, the authors expected that low-income homeowners of color would not experience the energy security benefits typically associated with homeownership. 

To test this hypothesis, the authors examined data on energy-related characteristics from the 2020 Residential Energy Consumption Survey (RECS), a nationally representative survey of approximately 18,500 households. The authors analyzed three indicators of energy insecurity, including receiving a utility disconnection notice, forgoing necessities such as food or medicine to pay an energy bill, and keeping the home at an unhealthy temperature. They looked at differences in these indicators across racial groups, income levels, and homeownership status while accounting for other housing characteristics, household composition, and geographic location.  

The authors found significant racial disparities in the relationship between homeownership and energy insecurity. For white households, homeownership consistently lowered the risk of energy insecurity relative to renting. Hispanic homeowners also generally experienced lower rates of energy insecurity than Hispanic renters. Black households, however, experienced a significantly different outcome. Among households earning less than $20,000 annually, Black homeowners were more likely to experience energy insecurity than Black renters.   

The study also showed households of color often needed substantially higher incomes to achieve the same level of energy security as white households with lower incomes. Black and Hispanic households did not experience energy insecurity rates comparable to white households until their annual incomes reached approximately $100,000. The authors also found that the share of households receiving energy assistance was substantially lower than the share experiencing energy insecurity, implying a considerable unmet need. 

The authors conclude that homeownership alone does not guarantee housing stability, financial security, or protection against energy hardship. Systematic inequities in housing markets, neighborhood conditions, and access to resources continue to shape outcomes for many low-income Black homeowners. The authors recommend future research using longitudinal data and administrative records from utility providers to better understand the causes of energy insecurity. The authors also suggest expanding energy assistance programs, weatherization efforts, and home repair resources to address the disproportionate burden faced by low-income households of color and promote more equitable housing outcomes. 

The study is available here.