2020 State of Housing in Black America

Vanessa Gail Perry

Michelle Aronowitz ♦ Jung Hyun Choi ♦ Edward Golding
Morgan Green ♦ Richard K. Green ♦ Maurice Jourdain-Earl
Ashlyn Aiko Nelson ♦ Lauren Rhue ♦ Lisa Rice

Section 1 Notes

  1. c.f., Yun, L., & Evangelou, N. (2016). Social Benefits of Homeownership and Stable Housing. National Association of Realtors; Green, R. K., Painter, G., & White, M. J. (2012). Measuring the Benefits of Homeowning: Effects on Children Redux. Haurin, D., Dietz, R., Weinberg, B., 2003. The impact of neighborhood homeownership rates: a review of the theoretical and empirical literature, Journal of Housing Research 13, 119-151.
  2. Perry, Vanessa G. (2019), “A Loan at Last? Race and Racism in Mortgage Lending,” in Race in the Marketplace: Crossing Critical Boundaries, G.D. Johnson, K.D. Thomas, A.K. Harrison, S. A. Grier, editors: Palgrave MacMillan: Cham, Switzerland, 173-192.
  3. U.S. Census, Annual Estimates of the Resident Population by Sex, Age, Race Alone or in Combination and Hispanic Origin for the United States: April 1, 2010 to July 1, 2019
  4. “Building the Future with ‘Mortgage-Ready’ Borrowers,” presented by Freddie Mac and Housing Wire, https://sf.freddiemac.com/articles/insights/building-the-future-with-mortgage-ready-borrowers.
  5. Roscigno, V.J., Karafin, D.L., & Tester, G. (2009). The complexities and processes of racial housing discrimination. Social Problems, 56(1), 49-69.
  6. DiPrete, T.A. and Eirich, GM (2006). Cumulative advantage as a mechanism for inequality: a review of theoretical and empirical developments. Annual Review of Sociology, 32(1), 271-297.
  7. Assumes Purchase Price White 330K Black 220K; Interest Rates White 4% Black 4.5%; Down Payment White 10% Black 3.5%; Property Tax Rate White 1% Black 1.13%; Rent Rate (of home value) White 1% Black 1%; Growth Rate White 4.5% Black 0.5%. Data sources: 2018 HMDA, Center for American Progress, “The Assessment Gap: Racial Inequalities in Property Taxation, “Carlos Avenancio-Le´on and Troup Howard, Working paper, June 2020, https://www.washingtonpost.com/context/the-assessment-gap-racial-inequalities-in-property-taxation/215957a4-d5ad-47cd-821a-070cf23b6bc7/?itid=lk_inline_manual_3.
  8. https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/racial-ethnic-minorities.html
  9. https://cepr.net/a-basic-demographic-profile-of-workers-in-frontline-industries/
  10. https://siepr.stanford.edu/sites/default/files/publications/20-022.pdf
  11. Census Household Pulse Survey data, https://www.census.gov/data/tables/2020/demo/hhp/hhp8.html
  12. U.S. Census Bureau, Homeownership Rate for the United States, https://fred.stlouisfed.org/graph/?g=tNbQ
  13. U.S. Census Bureau, Homeownership Rate for the United States, retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/NHWAHORUSQ156N
  14. https://www.census.gov/quickfacts/fact/table/US/RHI825218#RHI825218; Source: U.S. Census Bureau, American Housing Survey, 2017 National - Household Demographics - All Occupied Units
  15. https://www.urban.org/sites/default/files/publication/101160/explaining_the_black-white_homeownership_gap_a_closer_look_at_disparities_across_local_markets_0.pdf
  16. https://www.urban.org/urban-wire/why-do-black-college-graduates-have-lower-homeownership-rate-white-people-who-dropped-out-high-school
  17. https://1xfsu31b52d33idlp13twtos-wpengine.netdna-ssl.com/wp-content/uploads/2019/02/Race-and-Ethnicity-in-Higher-Education.pdf; https://ticas.org/wp-content/uploads/2020/02/Rising-Student-Debt-2020-Election.pdf https://www.experian.com/blogs/ask-experian/do-student-loans-affect-credit-score/
  18. https://www.experian.com/blogs/ask-experian/do-student-loans-affect-credit-score/
  19. https://www.washingtonpost.com/opinions/2019/06/13/african-americans-are-held-back-most-by-student-loan-debt-heres-solution/
  20. https://www.forbes.com/sites/advisor/2020/04/03/what-the-cares-act-means-for-student-loan-borrowers-seeking-public-service-loan-forgiveness/#79eca3c64e88
  21. https://www.cnbc.com/2020/01/27/ficos-new-credit-score-wont-ding-you-for-student-loans-or-mortgages.html
  22. https://www.federalreserve.gov/econres/notes/feds-notes/recent-trends-in-wealth-holding-by-race-and-ethnicity-evidence-from-the-survey-of-consumer-finances-20170927.htm
  23. Dettling, Lisa J., Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, and Jeffrey P. Thompson (2017). "Recent Trends in Wealth-Holding by Race and Ethnicity: Evidence from the Survey of Consumer Finances," FEDS Notes. Washington: Board of Governors of the Federal Reserve System, September 27, 2017, https://doi.org/10.17016/2380-7172.2083.
  24. Median house prices provided by Clear Capital, https://www.kiplinger.com/article/real-estate/T010-C000-S002-home-price-changes-in-the-100-largest-metro-areas.html; 2020 Black Homeownership by MSA from U.S. Census; National Association of Home Builders-Wells Fargo Opportunity Index
  25. https://www.nahb.org/News%20and%20Economics/Housing%20Economics/Indices/Housing%20Opportunity%20Index
  26. The dissimilarity index of racial segregation ranges from 0 to 100 and measures the percentage of one race that would have to move from one neighborhood to another to have the same racial composition in both neighborhoods.
  27. https://s4.ad.brown.edu/projects/diversity/segregation2010/Default.aspx
  28. https://www.brookings.edu/research/devaluation-of-assets-in-black-neighborhoods/
  29. Blau, F.D. and Graham, J.W. (1990) Black-White differences in wealth and asset composition, Quarterly Journal of Economics, 105, 321-33.
  30. Flippen, C. (2004). Unequal returns to housing investments? A study of real housing appreciation among Black, White, and Hispanic households. Social Forces, 82(4), 1523–1551.
  31. https://socialequity.duke.edu/wp-content/uploads/2019/10/Plunder-of-Black-Wealth-in-Chicago.pdf
  32. Avenancio-Leon, Carlos and Howard, Troup, The Assessment Gap: Racial Inequalities in Property Taxation (October 5, 2019). Available at SSRN: https://ssrn.com/abstract=3465010 or http://dx.doi.org/10.2139/ssrn.3465010
  33. Replicated with permission from “Racial Disparities in Home Appreciation: Implications of the Racially Segmented Housing Market for African Americans’ Equity Building and the Enforcement of Fair Housing Policies, by Michela Zonta, Center for American Progress, July 15, 2019, https://www.americanprogress.org/issues/economy/reports/2019/07/15/469838/racial-disparities-home-appreciation.
  34. “Building the Future with ‘Mortgage-Ready’ Borrowers,” presented by Freddie Mac and Housing Wire, https://sf.freddiemac.com/articles/insights/building-the-future-with-mortgage-ready-borrowers.
  35. “Millennial Homeownership: Why Is It So Low, and How Can We Increase It? Jung Choi, Jun Zhu, Laurie Goodman, Bhargavi Ganesh, Sarah Strochak, July 2018, https://www.urban.org/sites/default/files/publication/98729/millennial_homeownership_0.pdf
  36. 2018 Millennial Homeownership Report: American Dream Delayed, Chris Salviati and Rob Warnock, https://www.apartmentlist.com/research/2018-millennial-homeownership-report-american-dream-delayed; https://www.nar.realtor/newsroom/student-debt-delaying-millennial-homeownership-by-7-years
  37. 2017 American Housing Survey
  38. Ibid.
  39. From “Building the Future with ‘Mortgage-Ready’ Borrowers,” presented by Freddie Mac and Housing Wire, https://sf.freddiemac.com/articles/insights/building-the-future-with-mortgage-ready-borrowers, reprinted with permission.
  40. Ibid.