Article
Unequal Returns to Housing Investments? A Study of Real Housing Appreciation Among Black, White, and Hispanic Households
Social Forces (Impact Factor: 1.29). 06/2004; 82(4):1523-1551. DOI: 10.1353/sof.2004.0069
ABSTRACT
This article assesses whether housing in predominantly minority and integrated neighborhoods appreciates more slowly than comparable housing in predominantly white communities, and if so, the extent to which inequality is due to neighborhood racial composition per se rather than nonracial socioeconomic and housing structure factors. I take a dynamic approach to the issue of housing appreciation, considering both racial, ethnic, and poverty composition at purchase and change in those characteristics over time. I examine differences in real housing appreciation across black, white, and Hispanic households by applying a hedonic price analysis to data from the Health and Retirement Study, combined with data from the 1970, 1980, and 1990 Census. While much of neighborhood appreciation inequality is explained by nonracial (particularly socioeconomic) factors, minority composition continues to exert a significant effect on appreciation even net of these considerations, particularly in highly segregated communities and those that experience large increases in black representation. Unequal housing appreciation has a large negative impact on the overall wealth holdings of mature minority households, and has important implications for racial and ethnic stratification.
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- "Interestingly, Latinos (as well as blacks and Asians) " gain substantially lower equity returns to income and education than do white households " (Krivo and Kaufman 2004). Significant gaps in housing real appreciation rates between Latinos and Whites have been also observed, which are largely explained by the combined effect of income and racial/ethnic segregation (Flippen 2004). In 2004, Latinos had the highest share of " unbanked " households, at 25 percent, followed by African-Americans at 24.2 percent, and 5.3 percent for Whites. "
Centro Journal 01/2015; XXVII(1):100-125. -
- "Blacks and Hispanics have experienced a high level of residential segregation, in addition. Blacks are heavily segregated in low-income communities (Charles, 2001; Emerson, Chai, and Yancey, 2001; Massey & Denton, 1993; Rugh & Massey, 2010; Wilson & Hammer, 2001; Flippen, 2004). The practice of redlining denies service or increases the cost of service, such as banking and financing, to the residents in certain often minority dominated neighborhoods. "
08/2014; 2(4). DOI:10.11114/ijsss.v2i4.457 -
- "Both the mean and median values of minority homes are lower than those of whites. Minority homeowners experience more difficulty acquiring initial home equity and recovering accumulated equity than do white homeowners (Bianchi et al. 1982; Flippen 2004; Hill 2005). These outcomes may factor into the mortgage market, influencing lenders' decisions to invest in minority neighborhoods. "
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ABSTRACT: This article explores the relationship between racial composition of neighborhoods and approval and origination of mortgages. It measures independent neighborhood effects, above and beyond applicant race effects preceding the recent housing market crisis for rental and owner‐occupied homes. Mortgage applications are selected from the dozen most populated metropolitan areas in New England. Applications are linked to corresponding neighborhood data and generalized linear mixed modeling is applied. Data include prehousing market crash Housing Mortgage Disclosure Act data matched to American Community Survey 5‐year data for over one million applications. Findings indicate, although controlling for income, gender, and race of the applicant, poverty and tenure, and additional socioeconomic variables, neighborhood racial composition has a statistically significant effect on whether mortgages are approved and originated. Minority presence is correlated with a negative effect on mortgage origination regardless of race of the individual loan applicant. More specifically, whites’ applications are also turned down in minority neighborhoods, especially black neighborhoods.City & Community 03/2012; 11(1). DOI:10.1111/j.1540-6040.2011.01391.x · 1.10 Impact Factor
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