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New evidence on racial and ethnic disparities in homeownership in the United States from 2001 to 2010

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... Despite the massive ramifications of the housing market boom and subsequent crash, previous research has failed to provide a timely analysis of ac- cess to homeownership and racial disparities in mortgage lending since the housing crash occurred (Grutsky et. al. 2011;O'Neil Kuebler and Rugh 2013). ...
... Credit worthiness has been modelled using place-based credit scores in several important studies, given the high cost and privacy restrictions placed upon individual credit scores which limit their availability for research purposes (e.g., Calem, et. al. 2004;Hyra et al. 2013, O'Neil Kuebler andRugh 2013;Rugh and Massey 2010;Rugh 2012). ...
... Asian and Hispanic applicants were also sizably disadvantaged, 4% and 6.85% respectively, when applicant and neighborhood variables were accounted for in Model 5, relative to whites. This finding contrasts those of O'Neil Kuebler and Rugh (2013), who reported homeownership disparities between whites and Asians and Whites and most Hispanic groups could be largely explained with the inclusion of covariates. Theories of spatial isolation and segregation by Massey and Denton (1993), Rugh and Massey (2010), and Sharkey (2013) correctly predicted that Black applicants would be the most disadvantaged racial ethnic group. ...
Article
Subtle and overt racism still exist in US society, and while researchers have been largely attentive to overt forms of racism, everyday forms of racism remain undertheorized. Everyday racism examines the lived, daily experience of oppression, and in so doing, illuminates the ways racist practices permeate macro and micro level relations. The term highlights the fact that these discriminatory practices and treatments are part of the everyday experience of people of color. This article seeks to make an important contribution toward understanding white epistemologies of ignorance with respect to the existence of continuing racial oppression and ingrained white supremacy in society, especially their roles in the same. Violence against African American bodies is not new. In fact, knowledge of historical practices of violence, which included physical attacks, overt threat of force, and pronounced racial epithets, makes it difficult for many to see the very real contemporary threat to black bodies in society. While important research has focused on the disproportionate exposure to and treatment of blacks in the prison industrial complex, a number of scholars are reintroducing important discussions about the ways in which elements of the carceral operate in the daily lives of people of color. This article introduces a theoretical framework—Bodies Out of Place (BOP)—which offers a critical lens useful to expose racism in everyday and institutional interactions.
... Socio-economic effects. Literature reveals that socio-economic factors are key in determining housing outcomes (Kuebler and Rugh, 2013;Gyourko et al., 1999;Ihlanfeldt and Martinez-Vazquez, 1986;Rosenthal, Duca and Gabriel, 1991). Housing tenure outcomes are theoretically linked to affordability, specifically household income, labour market conditions, house prices and credit constraint. ...
... Scholars (Goodman, 1990;Coulson, 1999;Nygaard, 2011;Zorlu et al., 2014;Skifter Andersen et al., 2016) also reveal that demographic factors such as gender, race, ethnicity and age influence housing tenure outcomes. Åslund (2005) specifically finds that households with male heads have lower homeownership probability, and Kuebler and Rugh (2013) observe a variation in homeownership differences between Whites, Asians, Mexicans and Cubans. Kuebler and Rugh (2013), however, acknowledge that socio-economic effects may be stronger that demographic effect. ...
... Åslund (2005) specifically finds that households with male heads have lower homeownership probability, and Kuebler and Rugh (2013) observe a variation in homeownership differences between Whites, Asians, Mexicans and Cubans. Kuebler and Rugh (2013), however, acknowledge that socio-economic effects may be stronger that demographic effect. It will, therefore, be worthy to compare these across migrant generations. ...
Article
Purpose This study aims to examine the housing outcomes of natives and multiple generations of non-natives using a longitudinal survey data in Britain. Design/methodology/approach The authors use longitudinal data from Britain, in which they can observe multiple generations of immigrants and their demographic and economic information. Findings The probability models for housing tenure reveal significant variation in the outcomes which are robust to several econometric specifications. Research limitations/implications As migration and its impact on local economy is a highly debated topic across several major regions of the world, the findings bring out important insights with policy implications. The research is limited by the sample size of the longitudinal survey. Originality/value The empirical evidence on the topic is quite limited with mixed findings. Especially, the authors’ ability to look through multiple generations is unique in identifying the variation in housing outcomes for the native and non-native citizens.
... Although this research sheds light on levels of stratification across racial/ethnic groups, it says little about inequities within racial/ethnic groups (Portes, Aparicio, and Haller 2016;Desmond 2017). This gap in the literature is significant because there is considerable variation in life-chance opportunities, including homeownership, among Latinx arrivals to the U.S. based on race and social class, which may have intergenerational implications (Alba and Logan 1992;Coulson 1999;Borjas 2002;Cahill and Franklin 2013;Kuebler and Rugh 2013;Painter, Gabriel, and Myers 2001;Weber 1978). Levels of assimilation are generally considered to be a proxy for social class, and therefore inequities in homeownership can be related to measures of assimilation. ...
... Immigrant and second-generation homeownership is an important topic within the literature on assimilation as it represents one major pathway towards integration into the mainstream society according to classical notions of assimilation (Kuebler and Rugh 2013;Akresh 2011;McConnell 2015;Alba and Logan 1992). Homeownership is often treated as an indicator of commitment to living in a host country (Alba and Logan 1992) and a general measure of assimilation given that the majority of the U.S. population owns a home (see Table 1 below). ...
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This analysis uses 2015 American Community Survey data to explore the determinants of homeownership among Cuban-Americans in the U.S. Homeownership is an important wealth-generating mechanism and access to it can determine the future socio-economic standing of the second generation and beyond. Drawing insights from the literatures on systemic racism and assimilation, we test two competing theories of homeownership stratification among Cuban-Americans. While logistic regression results indicate that race and measures of assimilation predicthomeownership, we find greater support for assimilation theory. Consistent with previous research, sociocultural assimilation measures like English language and nativity positively predict the odds of homeownership. The analysis concludes with a discussion of theoretical implications for studying homeownership, racial stratification, and assimilation.
... The price of renting relative to owning affects the incentives for homeownership (Linneman 1985;Mills 1990). Studies examining the tenure decisions of Hispanic and White households find that the price-rent ratio within an area is a consistent predictor of homeownership, with higher ratios lowering homeownership rates for all groups (Acolin et al. 2019;Burr et al. 2011;DeSilva and Elmelech 2012;Kuebler and Rugh 2013;Myers and Lee 1998;Wachter and Megbolugbe 1992). Additionally, DeSilva and Elmelech (2012) conclude that the price-rent ratio has a stronger effect on Hispanics, even after controlling for income and other characteristics, and Acolin et al. (2019) find that, in aggregate, Hispanics faced higher price-rent ratios than Whites in all three time periods they studied. ...
... Their concentration in large metros, in addition to specific states, can also aggravate this difference as large metros tend to have higher prices and lower homeownership rates overall (Haurin et al. 2007). Studies using regional controls find that living in the West and Northeast lowers the probability of homeownership (Flippen 2001;Krivo 1986;Kuebler and Rugh 2013;; given Hispanics' heavy concentration in these regions, this effect disproportionately impacts them in comparison to Whites. ...
Article
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Location is a crucial but often unexamined determinant of homeownership outcomes. The literature on Hispanic homeownership and the Hispanic-White homeownership gap has focused on financial, demographic, and assimilative drivers of Hispanics’ tenure outcomes. However, in light of substantial changes to Hispanic settlement patterns in the 1990s and 2000s, the effects of geography on homeownership merit a closer evaluation. This article reviews the literature’s current theoretical frameworks and empirical findings on the role of geography on Hispanic homeownership, and suggests avenues for further research.
... Many analysts contend that these disparities reflect racial disparities in earnings and household incomes and the concentration of racial minorities in pockets of poverty. An extensive literature also shows how the negative impact of the predatory marketing of high-risk subprime loans to minority-concentrated neighborhoods resulted in dire outcomes after the financial crisis of 2008 (Faber 2017;Kuebler and Rugh 2013;Rugh and Massey 2010). ...
... The last specification in Table 2 shows that black homeownership was disproportionately affected by the crisis with an additional 7.7 percentage point fall in the homeownership rate for blacks, compared to a 3.3 percentage point fall for whites. Our results are consistent with previous studies that use national IPUMS data and find that blacks were disproportionately affected by the financial crisis (Kuebler and Rugh 2013). ...
Article
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Racial disparities in homeownership in Minnesota are among the largest in the nation. In this study, we document the widening racial disparities in homeownership rates and credit market conditions during the Great Recession using Census and HMDA data. During the Great Recession, the disparities in both credit lending and loan application rates widened, which contributed to the widening racial disparities in homeownership rates. Our study suggests that the Great Recession has disproportionately impacted the experience of black families
... Differences in parentchild relationships may reflect the immigration experience and the communities immigrants join in the United States (Bean and Stevens 2003;Mollenkopf et al. 2005). Immigrants enter into a stratified society where racial/ethnic minorities frequently encounter discrimination in schools (Benner, Crosnoe, and Eccles 2014), the labor market (Pager 2003), and housing (Ewens, Tomlin, and Wang 2014;Kuebler and Rugh 2013), leading to deepening racial and ethnic segregation (Massey and Denton 1998) and economic inequality (Bloome 2014;Hardaway and McLoyd 2009;Kalil and Wightman 2011). For example, wealth inequality among immigrants largely follows pre-established patterns of much lower wealth accumulation among Black and Hispanic families compared to White and Asian families (Hao 2007). ...
Article
Parents play a key role in launching their children into adulthood. Differences in the resources they provide their children have implications for perpetuating patterns of family inequality. Using data on 6,962 young adults included in the National Longitudinal Survey of Youth 1997, we examine differences in the support parents provide to young adult children by immigrant status and race/ethnicity and whether and how those differences are explained by parent resources and young adult resources and roles. Immigrant status and race/ethnicity are associated with patterns of support in complex ways. We find that racial/ethnic and immigrant disparities in perceptions of support, financial support, and receiving advice from parents about education or employment are explained by family socioeconomic resources. Group differences in whether young adults say they would turn to a parent for advice and coresidence persist after accounting for these factors, however. Young adult resources and roles also shape parental support of young adults in the transition to adulthood, but taking account of these characteristics does not explain immigrant and racial/ethnic group differences. Our findings highlight the need to consider both race/ethnicity and immigrant status to understand family relationships and sources of support.
... These forces historically have encompassed practices such as redlining and racial covenants (Massey and Denton 1993), but today, factors including landlord behavior, real estate agents, lending practices, and zoning restrictions reinforce residential stratification (Desmond 2012;Massey and Lundy 2001;Turner and Ross 2005;Rosen 2014;Rugh and Massey 2014;Squires and Kim 1995;Varady 2006;Yinger 1995). An emerging literature suggests that legal status confers protective benefits in the housing market (Cahill and Franklin 2013;Kuebler and Rugh 2013), with foreclosure rates among Hispanics highest in areas characterized by a strong local immigration enforcement infrastructure and a larger share of homes owned by undocumented immigrants (Rugh and Hall 2016). Local ordinances denying rental units to the undocumented may also represent a barrier to residential integration (Brettell and Nibbs 2011;see Bell 2013). ...
Article
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In the United States, the residential segregation of Latinos from whites has persisted but has fallen between Latinos and blacks. Demographers offer the size of the Latino population that is undocumented as one potential explanation for these patterns. However, little work has examined undocumented immigrants’ first-hand accounts of residential decision-making. Drawing on interviews with undocumented-headed, Latin American-origin families in Dallas, Texas, we explore how lacking legal status relates to residential selection. We find that some undocumented families perceive certain neighbourhoods to be ‘off-limits’, not only because of financial constraints, explicit legal impediments to their tenure, or individual racial preferences, but also because they perceive them as high-risk: Most sample households agree that law enforcement patrols areas with white majorities in order to exclude Latinos and, specifically, the undocumented. As a strategy to minimise the perceived risk law enforcement poses to their families’ stability, some undocumented families in the study report opting into neighbourhoods with Latino majorities in order to ‘blend in’, whereas others describe feeling safe in neighbourhoods with black majorities where they can ‘hide in plain sight’. We demonstrate how undocumented families’ perceptions of law enforcement in neighbourhoods with differing racial compositions may partly underlie trends in residential selection and stratification.
... The preponderance of low-wage employment available to new migrants locked many in conditions that make acceding to homeownership or renting more difficult and promoted suboptimal housing conditions (Painter and Yu 2008). In general, differences in socioeconomic status are the main source of disparity in homeownership between white households and Asian and Latino households (Kuebler and Rugh 2013). However, Latinos in Los Angeles in particular have a large degree of heterogeneity in nativity, citizenship, and legal status. ...
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Fifty years after the national Kerner Commission report on urban unrest and fifty-three years after California's McCone Commission report on the 1965 Watts riots, substantial racial disparity in education, housing, employment, and wealth is still pervasive in Los Angeles. Neither report mentions wealth inequality as a cause for concern, however. This article examines one key dimension of racial wealth inequality through the lens of home ownership, particularly in South Los Angeles, where the 1965 Watts riots took place. It also analyzes the state's role in housing development in codifying and expanding practices of racial and class segregation that has led to the production and reproduction of racial inequality in South Los Angeles compared with Los Angeles County.
... However, the discrepancy between black and Latino foreclosure rates that emerged and widened over time has spurred inquiry into the role of nativity and legal status in explaining the Latino disadvantage (Allen 2011;Kochhar, Gonzalez-Barrera, and Dockterman 2009;Pfeiffer et al. 2014;Rugh 2015a;Rugh 2015b;Rugh and Allen 2015). For example, Cuban immigrants (who enjoy immigration protections) and Puerto Ricans (who are U.S. citizens) were not as negatively affected as Mexican Americans by the housing crisis (Cahill and Franklin 2013;Kuebler and Rugh 2013). ...
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Over the past decade, Latinos have been buffeted by two major forces: a record number of immigrant deportations and the housing foreclosure crisis. Yet, prior work has not assessed the link between the two. We hypothesize that deportations exacerbate rates of foreclosure among Latinos by removing income earners from owner-occupied households. We employ a quasi-experimental approach that leverages variation in county applications for 287(g) immigration enforcement agreements with Immigration and Customs Enforcement and data on foreclosure filings from 2005–2012. These models uncover a substantial association of enforcement with Hispanic foreclosure rates. The association is stronger in counties with more immigrant detentions and a larger share of undocumented persons in owner-occupied homes. The results imply that local immigration enforcement plays an important role in understanding why Latinos experienced foreclosures most often. The reduced home ownership and wealth that result illustrate how legal status and deportation perpetuate the racial stratification of Latinos.
... Yet, the recent history of homeownership has shown how ownership alone is no guarantee of racial equality. The terms of homeownershipsubprime versus prime mortgages, rising versus falling prices, and how these terms correspond to white versus non-white neighborhood composition-all combine to influence the risk of exiting ownership and the associated decline in wealth and neighborhood advantage (Kuebler and Rugh 2013;Fischer and Lowe 2015;Rugh and Massey 2010;Sharp and Hall 2014). For example, from 1995 to 2005 the black homeownership rate rose from 42 to 48%, only to fall back to 42% by 2015-a relative decline of over 12% from the peak; in contrast, white homeownership rose from 70% in 1995 to 76% in 2005 and then settled back to 72% by 2015-a decline of only 5%. ...
Article
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The military has long been seen as an avenue for increasing racial equality for minorities, especially black Americans. In this article, we examine to what extent military veterans also experience residential integration by looking at neighborhood residential outcomes for black and white men utilizing the popular Veterans Affairs (VA) loan program to purchase a home. We draw on data from the Home Mortgage Disclosure Act (HMDA) to examine residential integration among white and black veteran homebuyers compared to homebuyers utilizing conventional loans over three major lending eras: 1990s, 2000–2007, and 2008–2015. By 2015, a quarter of all home purchase mortgages loans to black men were VA loans even though veterans made up only a tenth of the adult black male population. In our multivariate analyses, we uncover a sizeable combined swing toward neighborhood minority-white integration, 14.4% points, among black and white veterans who use VA loans. Compared to those with conventional loans, black veterans live in neighborhoods with 10.0% points fewer minorities and, white veterans, 4.4% points fewer whites. Our results illustrate how racial integration in the US military has the potential to foster lasting housing integration among veterans.
... LEP persons in households where no adult speaks English very well are considered LI (Siegel, Martin, & Bruno, 2001). LI is associated with socio-economic disadvantage and poorer well-being (Derose et al., 2007;Kuebler & Rugh, 2013;Mora & Dávila, 2011), but few studies focus on predictors (Lestina, 2003;Siegel et al., 2001), much less explain LI differences among immigrant subgroups. ...
Article
Objectives: To identify diverse pathways to linguistic isolation (LI) and explain the differences in LI for older immigrants from different countries. Method: A demographic decomposition of LI was applied to 18 largest origin subgroups of foreign-born, ages 65 and older, in the 2010-2014 American Community Survey data. Results: LI varied from 12% for older Indians to 68% for older Ukrainians. Decomposition analysis identified 3 components: (a) Limited English proficiency (LEP); (b) Solitary living; and (c) Limited English of co-resident others. The relative contribution of components differed by country of origin, pointing to different pathways to LI. Older Mexicans have the highest LEP, but moderate LI due to infrequent solitary living and the English proficiency of co-resident others. Many Chinese and Vietnamese older adults are LI because they live with other LEP adults. Older Europeans' common pathway to LI is solitary living. Discussion: Components of LI in ethnic communities can inform communication strategies for older LEP lacking access to critical information.
... In addition to individual attitudes and savings behavior, credit market access and use are also associated with certain wealth outcomes (Keister 2000a;McCloud and Dwyer 2011). Because homes provide the majority of household assets for most families, racial differences in homeownership largely influence broader disparities in net worth (Kuebler and Rugh 2013). These disparities also extend to home equity, interest rates, and fees (Flippen 2004;Krivo and Kauffman 2004). ...
Article
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This article investigates net worth disparities by race and ethnicity using pooled data from the 1998–2013 waves of the U.S. Survey of Consumer Finances. I apply unconditional quantile regression models to examine net worth throughout the wealth distribution and decomposition procedures to demonstrate how different factors related to demographics, human capital, financial attitudes, and credit market access contribute to racial wealth disparities. In the aggregate, non- Hispanic black households held $8,000 less in net worth than non-Hispanic white households at the 10th percentile, $204,000 less at the median, and $1,055,000 at the 90th percentile. Hispanic households faced similar disadvantages, holding $4,000 less in net worth at the 10th percentile, $208,000 less at the median, and $1,023,000 less at the 90th percentile. Disparities continued, but declined, after accounting for labor market disadvantages and credit market access, which again varied across the distribution. Decomposition models show that demographic and income differences mattered more for high-wealth households. These variables accounted for 43–55 percent of the gap for high-wealth households at the 90th percentile but only 10–28 percent at the 10th percentile. Among low-wealth households, differential access to credit markets and homeownership was associated with a larger proportion of the gap in net worth.
... Puerto Rican exceptionalism has been attributed to their residential segregation and racial stratification that resemble the experiences of African Americans more than other Hispanics (Massey and Denton 1993). However, the recent large-scale migration of Puerto Ricans to the South, mainly to Florida, led to a divergence from Blacks in the housing recovery (Kuebler and Rugh 2013). Because Orlando is more integrated and features a diverse Latino co-ethnic base, home ownership may be more stable among some Latinos (Flippen 2010). ...
Article
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In this article, I explore how race, class, and migration influence Latino household wealth, and uncover important implications for the close 2016 US presidential election outcome in Florida. I follow over 11,000 homeowners in the Orlando area of Orange County, Florida from 2004 to 2016. To proxy for immigrant incorporation, I leverage matched voter registration records and direct observation of borrower identification – driver’s license, green card/passport, or undocumented identification. Documented immigrants appear least vulnerable to foreclosure; multivariate analyses show that Latinos with undocumented identification are most vulnerable. Foreclosure and negative equity predict decreases in voter activity among Latino Democrats and Latino Independents, respectively, but not among Latino Republicans. I confirm this pattern at the precinct-level using data on all Orange County voters. Across Florida, county-level Latino foreclosures and lagging home prices correspond to a decline in the Democratic presidential vote from 2012 to 2016. My analysis reveals the mechanisms that erase Latino home equity and how the loss of wealth may have played a role in flipping Florida from a blue state to a red state.
... Urban residents who do not own single-family homes with space for gardening face signifi cant challenges in gaining long-term access to land for gardening. There are signifi cant race-and class-based disparities in homeownership in the United States, with White and higher-income households having much higher homeownership rates (Kuebler & Rugh, 2013 ). People without their own private land typically garden on public land (when available), or they squat, borrow, or lease from a private landowner. ...
Article
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Problem, research strategy, and findings: We draw on a multidisciplinary body of research to consider how planning for urban agriculture can foster food justice by benefitting socioeconomically disadvantaged residents. The potential social benefits of urban agriculture include increased access to food, positive health impacts, skill building, community development, and connections to broader social change efforts. The literature suggests, however, caution in automatically conflating urban agriculture’s social benefits with the goals of food justice. Urban agriculture may reinforce and deepen societal inequities by benefitting better resourced organizations and the propertied class and contributing to the displacement of lower-income households. The precariousness of land access for urban agriculture is another limitation, particularly for disadvantaged communities. Planners have recently begun to pay increased attention to urban agriculture but should more explicitly support the goals of food justice in their urban agriculture policies and programs. Takeaway for practice: We suggest several key strategies for planners to more explicitly orient their urban agriculture efforts to support food justice, including prioritizing urban agriculture in long-term planning efforts, developing mutually respectful relationships with food justice organizations and urban agriculture participants from diverse backgrounds, targeting city investments in urban agriculture to benefit historically disadvantaged communities, increasing the amount of land permanently available for urban agriculture, and confronting the threats of gentrification and displacement from urban agriculture. We demonstrate how the city of Seattle (WA) used an equity lens in all of its programs to shift its urban agriculture planning to more explicitly foster food justice, providing clear examples for other cities.
... Black households were nearly twice as likely as white households to be affected by the housing market crisis: their homeownership rates decreased more than any other group even after accounting for socioeconomic differences between groups (Bocian et al. 2011). As a result, most of black households' homeownership gains relative to white households were lost (Kuebler and Rugh 2013). Although immigrants made up a substantive portion of the total black population during the housing crisisnearly 10% (Kent 2007)-no research has yet investigated how black immigrants fared during the housing market crash. ...
Article
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The recent housing market crisis in the United States led to a drastic drop in homeownership and house values nationwide. While research documents the disproportionate impact of the housing market crisis on blacks, and the surprisingly small effect on immigrants, no research investigates how individuals who are both black and immigrants fared. I use 2005–2007 and 2009–2011 pooled American Community Survey data (N = 2,000,689 and 2,013,001, respectively) to determine whether black immigrants’ housing market outcomes mirrored that of U.S.-born blacks or other immigrants during the housing crisis. Using the maximum likelihood estimator regression with a Heckman correction to measure race and nativity differences in homeownership and house value, I find that there is a great deal of diversity in black immigrant housing market outcomes. Caribbean immigrants experienced significantly larger drops in homeownership than U.S.-born whites and blacks and Asian immigrants, but there is no significant difference between whites and African immigrants. Consistent with previous research, living in major settlement areas meditated black immigrants’ housing market disadvantage. Despite the benefits of living in a co-ethnic community, both African and Caribbean immigrants experienced significantly larger drops in house value than U.S.-born blacks and whites and Asian immigrants. These findings indicate that black immigrants’ housing options are more rather than less constrained than U.S.-born blacks after the housing market crash. Given that the bulk of black wealth is held in home equity, reduced house values may also have long-term consequences on black immigrants’ ability to make, maintain, and pass on wealth across generations.
... Though historical sociostructural causes are often overlooked, history is a place to start. Prejudice-based discriminatory policies (mortgage red-lining, segregation, pay gaps) substantially and continually limited minority families' social and economic capital (Cameron & Heckman, 2001;Farley, 1977;Kuebler & Rugh, 2011;Loury, 1977;Marshall & Jiobu, 1975;Williams & Collins, 2001). While these policies and practices are no longer legal, as a society, we still bear the mark of these practices. ...
... Even after accounting for variation in education and income, large racial wealth gaps remain in the United States (Oliver and Shapiro 2006). Black households are less likely to own their homes, have less net worth, and accumulate fewer assets over time than whites (Gittleman and Wolff 2004;Killewald 2013;Kuebler and Rugh 2013). Additional research has also shown significant disparities in wealth accumulation, home ownership rates, and home equity between white and Hispanic households (Campbell and Kaufman 2006;Flippen 2001Flippen , 2004Krivo and Kaufman 2004). ...
Article
Despite the strong relationship between the rise in mass incarceration over the last forty years and racial inequality in employment and wages, few studies have examined the long-term consequences and spillover effects of criminal justice contact on the black-white wealth gap in the United States. In this paper, we investigate the mechanisms whereby the local and distal incarceration of a family member affects household wealth, focusing on wealth disparities by race and education. Using data from the Survey of Income and Program Participation (SIPP), the Current Population Survey, and the Survey of Inmates in State and Federal Correctional Facilities and Local Jails, we apply fixed-effects and probit models to estimate how a family member’s incarceration influences household assets and debt over panel waves. We find that having an incarcerated family member reduced household assets by 64.3 percent and debt by 85.1 percent after we adjusted for the underrepresentation of institutionalization in SIPP data. We also discuss these findings in the context of broader racial disparities in wealth and employment. Our findings demonstrate how contemporary patterns of mass incarceration contribute to the maintenance of social inequality in wealth and form barriers to economic security for other household members.
... Further evidence of the relationship between destination choice and ethnicity is provided by Silm and Ahas, who found that ethnicity has a significant impact on the activity spaces of out-of-home nonwork activities (14). With regard to long-term decisions, the literature points out the significant influence of ethnicity on car ownership, residential location, and home ownership (5,7,11,15). ...
Article
In this study, data stemming from the 2010 Belgian National Household Travel Survey were used to assess the effect of a traveler’s nationality on daily travel time expenditure. Negative binomial (zero-inflated) models were estimated to isolate the effect of nationality after other contributing factors such as sociodemographics, residential characteristics, transport options, and temporal characteristics were controlled for. The results indicate that even if one controls for a series of other influencing factors, nationality plays a significant role in differences in travel time expenditure. This finding is especially relevant in the development of policy packages that are targeted at social inequalities. From a methodological perspective, methodological options—two weighting schemes and two bootstrap solutions—were presented to provide sufficient support for the conclusions. To generalize the results in further studies, an oversampling of travelers of different nationalities is strongly recommended. Future research should focus more on the underlying psychological constructs of why ethnic and cultural differences persist even if one accounts for other determinants.
... In the course of the twentieth century, racial residential segregation was established and perpetuated through a combination of public and private actions that made racial residential segregation a characteristic feature of urban America by mid-century (Massey & Denton, 1993). Together, the spatial segregation of African-Americans through real estate discrimination and the systematic disinvestment in black neighbourhoods through lending discrimination made it exceedingly difficult for African-American families to acquire homes and accumulate wealth during the long, post-war economic boom (Killewald, 2013;Kuebler Downloaded by [BYU Brigham Young University] at 08:43 04 November 2017 & Rugh, 2013;Lipsitz & Oliver, 2010;Sharp & Hall, 2014). Today many of the nation's largest historically segregated black neighbourhoods, such as those in the South Bronx and South Central Los Angeles, remain severely disadvantaged and have become majority-Latino, making Latinos also vulnerable to the adverse consequences of segregated spaces (Rugh, 2015;Steil et al., 2015;Tienda & Fuentes, 2014). ...
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In the decade leading up to the US housing crisis, black and Latino borrowers disproportionately received high-cost, high-risk mortgages—a lending disparity well documented by prior quantitative studies. We analyse qualitative data from actors in the lending industry to identify the social structure though which this mortgage discrimination took place. Our data consist of 220 depositions, declarations and related exhibits submitted by borrowers, loan originators, investment banks and others in fair lending cases. Our analyses reveal specific mechanisms through which loan originators identified and gained the trust of black and Latino borrowers in order to place them into higher cost, higher risk loans than similarly situated white borrowers. Loan originators sought out lists of individuals already borrowing money to buy consumer goods in predominantly black and Latino neighbourhoods to find potential borrowers, and exploited intermediaries within local social networks, such as community or religious leaders, to gain those borrowers’ trust.
... Many of these high-priced, subprime loans originated in African American communities were unsustainable and ultimately ended in default, stripping borrower equity and lining many Black communities with foreclosed properties. Homeownership has declined among African Americans more than any other racial or ethnic group (Kuebler & Rugh, 2013). Some estimate that the Great Recession wiped away half of Black America's wealth (Shapiro et al., 2013) and contributed to widening the wealth gap between Blacks and Whites (Taylor et al., 2011). ...
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The United States experienced the Great Recession between 2007 and 2009 and many American cities and communities are still suffering from its legacy. During the prior period of the early and mid-2000s, many inner city African American communities were experiencing gentrification, driven in part by the real estate bubble that popped in 2007. While much has been written about the institutional and structural causes and consequences of the Great Recession, this article seeks to better understand its community-level implications by investigating the relationship between lending and property value patterns in three gentrifying African American communities just before, during and after this economic calamity. In particular, we investigate Bronzeville in Chicago, Harlem in New York City and Shaw/U Street in Washington, DC. Evidence suggests the Great Recession differentially influenced the development trajectories of these urban neighborhoods. In Bronzeville severe and prolonged property decline resulted, while much less economic stagnation was experienced in Harlem and Shaw/U Street. The Great Recession did not have uniform implications for urban African American neighborhoods: distinct community and city contexts, in particular racial and class neighborhood transitions and citywide unemployment and housing market conditions, mediate the influence of national economic decline and recovery.
... Similar to Black Americans, Salgado and Ortiz (2019) report that Mexican Americans rely on home equity as the primary source of household wealth, counting on very little or zero parental intergenerational financial support. Recently, affluent Puerto Ricans in more racially integrated settings such as suburban Florida may be on track for honorary white status, taking advantage of residential mobility, home ownership, and greater housing wealth (Duany 2010;Duany and Rodríguez 2006;Kuebler and Rugh 2013;Rugh 2019a; see Huante 2019 and Vallejo 2012 regarding Mexican Americans who cross, but do not shift, group racial boundaries). In review, since the 2008 housing crisis, the Black and Latino middle classes remain fragile, under the strain of student loan debt and obligations to family and co-ethnics facing incarceration, deportation, foreclosure, and eviction-all of which destroy wealth (Desmond 2012 ...
Article
Recent scholarship across various disciplines since the U.S. housing crisis of 2008 has deepened our understanding of racial wealth gaps, especially as it pertains to housing. This article focuses on two less-developed dimensions of Black and Latino home ownership, voting and immigration, respectively. The Black home ownership rate has fallen to 41% as of 2019, the lowest level since the 1968 Fair Housing Act. I contend that the continued decline of Black home ownership reduces voting turnout. A multivariate fixed effects analysis of state-level Black voter turnout in presidential elections since 2000 lends support to this contention. In contrast, the Latino home ownership rate has rebounded, climbing to nearly 48% in 2019. I argue that this rise is as much a mirage as sign of progress—an artifact of the deportation of millions of Latin Americans and the end of undocumented Mexican migration. Such changes inflate Latino ownership rates by reducing the denominator rather than increasing the numerator of homeowners. Examining state-level data, my multivariate analysis shows that the decline in the undocumented population and, to a lesser extent, the increase of DACA recipients explain the level and change in Latino ownership more than the change in the share of Latino citizens or documented non-citizens. I conclude that the color line has reinforced a new Black/non-Black divide in home ownership that undermines the social mobility and electoral representation of Black Americans. Meanwhile, a tri-racial divide by legal status and race stratifies Latino home ownership. Intra-Latino inequality masquerades as success because of the expulsion of vulnerable Latino immigrants and their US citizen children. The social consequences distort the home ownership rate calculation and pose another threat to multiracial democracy.
... The tight interweaving of racialized homelessness with racist social systems, institutions, and public policies that perpetuate White supremacy and socioeconomic disadvantage according to racial hierarchies means racialized homelessness is inseparable from, and perhaps obscured by, racial economic inequality, segregation, and housing discrimination, and inequities in the homeless response system. If, as concluded by Fusaro et al. (2018), 1 in 6 and 1 in 12 Black and Hispanic households, respectively, experience homelessness in their lifetime, then racial disparities in homelessness are similar to-and in some cases, greater than-racial disparities in incarceration, poverty, and homeownership (Bonczar, 2003;Kuebler & Rugh, 2013;Lin & Harris, 2008). Homelessness is, therefore, a relatively common but understudied life course event for lowincome people of color that likely contributes to many other racial inequalities. ...
... For instance, Rugh and Massey (2010) noted that racially and ethnically segregated Asian neighborhoods were associated with fewer foreclosures when compared to similarly homogenous Latino and Black neighborhoods. Other studies highlight differences in foreclosure rates by ethnic group--for instance, Cubans experience lower foreclosure rates when compared to Mexicans and Puerto Ricans (Cahill and Franklin 2013;Kuebler and Rugh 2013;Rugh 2014). Among Asian ethnic groups, Vietnamese and Koreans had higher foreclosure rates than Chinese, Japanese, and Taiwanese homeowners (Ong, Pech and Pfeiffer 2013;Rugh 2015b). ...
Article
Scholars define emerging gateway metropolitan areas in the United States as regions in which immigrant communities settled after the 1990s. Historically, immigrant and minority neighborhoods are characterized by exclusion from conventional sources of financial capital––factors which compound risks associated with residential instability and foreclosure. Yet, these new gateways may offer protection from foreclosure due to the relative affordability of housing and concentration of racial and ethnic and class advantages. We examine whether foreclosure risk is mediated through spatial processes, race, nativity, and class. We find that race and nativity play a major role in mediating risk across immigrant gateways. Neighborhoods with higher levels of Asian concentration presented lower risk, regardless of nativity and income. In contrast, Latino foreclosure risk varied by nativity, income, and gateway. Emerging gateways are also associated with higher foreclosure risk. Our findings inform resurgent ethnicity theory and how middle‐class immigrant neighborhoods offer improved socioeconomic outcomes without relying on White areas as a standard for immigrant integration.
... A history of discrimination in employment and housing policies in the United States has left racial minorities with higher rates of housing problems and lower rates of stable homeownership than white people (Cutler, Glaser, & Vigdor, 1999;Kuebler & Rugh, 2013). A growing body of research points to ongoing discrimination among rental landlords (Hanson & Hawley, 2011) and mortgage lenders (Hanson, Hawley, Martin, & Liu, 2016;Kau, Keenan, & Munneke, 2012) that impede stable housing options for nonwhite Americans. ...
Article
Background Housing insecurity is endemic among low-income, marginalized families throughout the United States. Unstably housed families face increased likelihood of coming into contact with various social systems that upend family routines and norms, but the roles of these contacts in linking housing insecurity with long-term adolescent outcomes are unknown. Objective The present study tested whether family contacts with the criminal justice and child welfare systems mediated links between housing insecurity and adverse adolescent outcomes. Participants and setting Data came from at-risk families with children born 1998–2000 in 20 large American cities followed over 15 years (N = 2,892). Methods Structural equation modeling estimated a measurement model using confirmatory factor analysis and a structural model testing direct and indirect pathways from housing insecurity to adolescent depression and delinquency via contact with the criminal justice and child welfare systems. Results Housing insecurity was associated with increased contact with both the criminal justice and child welfare systems. Housing insecurity at age 5 was directly associated with adolescent depression at age 15 (β = 0.09, p < 0.05) and indirectly associated with adolescent delinquency via mothers’ criminal justice (β = 0.04, p < 0.05) and child welfare (β = 0.07, p < 0.05) contacts. Conclusions Families with high needs may face stigma or seek assistance that increases surveillance of families and thus likelihood for sanctioning by the criminal justice and child welfare systems. Providers and systems working with low-income, insecurely housed families must consider stigma faced by clients to avoid further marginalizing underserved populations.
... In a number of studies, the persistence of ethnic discrimination in the rental market has been demonstrated as being typified by the unequal treatment for renters based on ethnic identity (Pager and Shepherd 2008;Zick et al. 2008). Although discrimination based on ethnicity is illegal in many regions (De Prins et al. 2005), such acts are still widespread in the USA (Kuebler and Rugh 2013) and Europe (TNS Opinion and Social (TNS) 2012; Acolin, et al. 2016). Particularly in Western Europe, there is a strong Accessing Private Rental Housing in the Absence of Housing... linkage between ethnicity and socioeconomic status where ethnic minorities are often disadvantaged in terms of socioeconomic opportunities compared with ethnic majorities (Heath, et al. 2008). ...
Article
While housing research in the developed world illustrates rental information channels, little is known about the situation in developing countries. This study examines the channels of information that are used in the private rental housing market by renters using Kumasi metropolis in Ghana as a case study. Using qualitative research methods involving interviews, findings show that unlike the developed world where rental information is readily available online, renters rely on a network of friends, relatives, co-worshippers and informal agents to find rental properties. A personal search is also common amongst renters. The use of these channels of information is founded on the absence of publicly available rental data. It is suggested that the rental space be regulated as a starting point to ensuring more formality and a better flow of information in the rental market.
... Hispanic owners seem to have been hit hardest by the second surge of risky lending, known as "alt-A lending," which grew more rapidly after 2004 than subprime lending (Calem, Nakamura, and Wachter, 2011;Rugh, 2014). That wave of risky lending primarily took place in the Sunbelt, including places such as Florida, which also suffer from costly disasters (Kuebler and Rugh, 2013). The burst of the housing bubble in the late 2000s disproportionately affected Hispanics, who had the highest foreclosure rate after 2009 (Rugh, 2014). ...
Article
The number of highly destructive disasters is increasing in regions of the United States where the Hispanic population is growing fastest. Up-to-date studies of disaster preparedness are needed that include housing measures and other factors that may account for differences in disaster preparedness between Hispanics and other racial and ethnic groups. This study fills this gap in the literature by using data from the 2017 American Housing Survey, which includes a topical module on disaster planning along with the core measures of housing and neighborhood characteristics, including housing tenure. The results reveal that Hispanics are generally less prepared than non-Hispanic Whites regarding resource- and action-based measures, with a few exceptions. Hispanics, Blacks, and Asians are significantly more likely than Whites to have at least 3 gallons of water per person, and Hispanics and Blacks are significantly more likely than Whites and Asians to have flood insurance. The findings show that housing and residential characteristics are consistently significant in predicting preparedness-controlling for other relevant variables-although they do not attenuate the disadvantages that Hispanics and Blacks face in their disaster preparedness relative to Whites. Future research would benefit from further exploration of the linkage between racial and ethnic inequalities in housing and neighborhood characteristics and household disaster preparedness.
... The issue of racial inequality in homeownership sustainability was brought to the forefront during the Great Recession, when the housing crisis delivered a disproportionately hard hit on African Americans (Clark 2013(Clark , 2019Kuebler and Rugh 2013). Extensive works have assessed the unequal spread of foreclosure risk between Black and White homeowners. ...
Article
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To explain racially differential housing outcomes, previous studies have tended to concentrate on discriminatory processes within the mortgage market while ignoring homeowning families’ broad socioeconomic challenges. This study proposes a conceptual framework for understanding Black-White inequality in homeownership sustainability, which emphasizes Black homeowners’ socioeconomic challenges that are external to mortgage market evaluations, with a particular focus on the mediating role of liquid assets. Based on the Panel Study of Income Dynamics, the framework is put to an empirical test on the differential exit rates between Black and White homeowners in the United States during the recent housing crisis. The findings indicate that the racial gap in homeownership exit is eliminated after liquid wealth is controlled in the model alongside other covariates and that the inclusion of liquid wealth renders all mortgage-oriented variables nonsignificant with regard to their explanatory power for Black-White inequality in exit rates. Policy implications of the findings are also discussed.
... However, the situation might be different for Latinos. Kuebler and Rugh (2013) point out that there are no significant differences in levels of homeownership between whites, Asians, and Latinos in the United States, from 2000 to 2010. Instead, socioeconomic status is the major contributor to the ethnic disparities of homeownership between Latinos, white and Asians. ...
Article
The financial crisis has dramatically reshaped the map of inequality; in particular, wealth has been redistributed because of fluctuations in the prices of equities and housing. However, since the explanation of this issue has by default been seen as economists' responsibility, the spatial dimension of the financial crisis still remains unexplored, especially at the intra-urban level. This study examines the local geographies of the housing value bust (2008–2012) and boom (2012–2016) since the financial crisis, with an explicit emphasis on their impacts on urban inequality in Salt Lake County, Utah. We find that housing value changes differ across space and appear strongly associated with the spatial distribution of neighborhood conditions and urban amenities. Additional regressions confirm that a city's housing market volatility is amplified by uneven distribution of physical and service amenities and residential segregation. Moreover, the significance level of local attributes changes over the bust-boom cycle of the housing market. The comparison between bust and boom models suggests that the value of houses enjoying shade from trees and proximity to jobs, places of worship, and good public schools are more resilient, experiencing less value drop in an economic bust, but also less increase in a boom. Other amenities such as public transport, hospitals, parks, and restaurants could be interpreted as types of discretionary consumption, which positively contribute to housing value volatility. Neighborhood conditions, especially white-Hispanic segregation, significantly contribute to housing value fluctuation. Hispanic communities in Salt Lake County tend to experience more loss of property value in a bust and gain more in a boom. Thus, our study suggests that a more balanced urban distribution of employment, races, and amenities would significantly enhance local economic stability by smoothing fluctuations of business cycles at the local level.
... Additionally, household crowding and home ownership have been found to be predictive of educational attainment at age 25 (Conley, 2001). This is particularly important to consider, as disparities in household crowding and home ownership have been present for generations and continue to be prominent for EM populations (Kuebler & Rugh, 2013). ...
Article
The FOCUUS Model or Facilitating Occupational Performance on Campus: Uplifting Underrepresented Students, is a theoretically-based, evidence-centered model focused on ethnic minority (EM) students in higher education. The FOCUUS Model recognizes minority status as a determinant of health, where the experience of minority status stress (MSS) resulting from racism, stigmatization, marginalization, discrimination, microaggressions, and challenges to one’s sense of belonging largely influence one’s occupational performance, health, and overall well-being. Historical and contemporary injustices within American culture have resulted in multigenerational occurrences of disparities for EMs. Racial injustice is deeply embedded and still ever-present within practices and traditions in higher education institutions resulting in racialized experiences for EM students and contributing to further disparities in educational outcomes. The FOCUUS Model draws connections between historical and contemporary experiences of injustice by EM students in higher education on physical and mental health and various other outcomes. The FOCUUS Model illustrates the great influence and impact that these factors may have on EM students’ overall well-being, educational experiences, and academic performance. This model is intended to be utilized by program administrators and educators in higher education to support EM students including Black and/or African American, Indigenous and/or Native American, and other peoples of color including Latinx or Asian Pacific Islander Desi American. Occupational therapy (OT) programs can utilize this model to 1) gain knowledge about the EM student experience, 2) evaluate their current ideologies and practices, and 3) implement strategies suggested by the model to better support and uplift EM students.
Thesis
This dissertation examines how and why social contexts moderate gaps between people’s aspirations and attainment. The broader aim is to understand how contexts moderate the motivational and goal pursuit processes that contribute to social disparities. I examine these processes across 10 studies drawn from three empirical papers. First, I present eight experiments documenting how and why different ways of framing goal-relevant information influences people’s motivation and behavior such as when they begin saving for future events and how much unhealthy food they consume (“When Does the Future Begin? Time Metrics Matter, Connecting Present and Future Selves”: Lewis & Oyserman, 2015; “Seeing More and Eating Less: Effects of Information Granularity on the Perception and Regulation of Food Consumption: Lewis & Earl, in press). Second, I present a field experiment documenting that the stereotypes that are activated in public health clinics can undermine African American patients’ willingness to pay attention to stigmatizing health information (“African American Patients’ Attention to Health Information is Influenced by In-Group Peers in Health Clinics”: Lewis, Kougias, & Earl, 2017). Third, I present a national survey documenting that people’s interpretations of experienced difficulty (an important motivational construct) are influenced by their positions in the social hierarchy – indexed by the interaction between their race and level of education (“No pain, no gain? Social demographic correlates and identity consequences of interpreting experienced difficulty as importance”: Aelenei, Lewis, & Oyserman, 2017). Together, the 10 studies in this dissertation converge to suggest that if we wish to understand and address social disparities, researchers and practitioners must consider the interplay between social context and identity, and how it influences motivation and goal pursuit processes.
Article
During the past decade, housing markets across the United States experienced dramatic upheaval. Housing prices rose rapidly throughout much of the country from 2000 until the start of 2007 and then fell sharply during the next 2 years. Many households lost substantial amounts of equity during this downturn; in aggregate, U.S. homeowners lost $7 trillion in equity from 2006 to 2009. Aggregate home equity holdings had fallen back to 2000 levels by early 2009. Whereas this intense volatility has been well documented, there remain unanswered questions about the variation in experiences across racial groups, particularly among those who purchased their homes before the boom and kept them through the collapse of the market. Did this housing market upheaval widen the already large racial and ethnic gaps in housing wealth? Using the American Housing Survey, we analyze differences in the changes in home equity experienced by homeowners of different races and ethnicities between 2003 and 2009. We focus on homeowners who remained in their homes over this period, and find that blacks and Hispanics gained less home equity than whites and were more likely to end the period underwater. Black–white gaps were driven in part by racial disparities in income and education and differences in types of homes purchased. Latino–white disparities were most dramatic during the market’s bust.
Chapter
The 2007–2009 financial crisis initially appeared to have destroyed a huge amount of wealth in the United States. Housing prices dropped about 21% across the country and as much as 50% in some places, and the stock market dropped by nearly 50% as well. This chapter examines how the financial crisis differentially affected households at different parts of the income and wealth distributions. Our results show that all households lost about the same percentage of their wealth in that period. But because households in the top 10% of the wealth distribution owned many different kinds of assets, their wealth soon recovered. The bottom 80% of the wealth distribution had more of their wealth tied up in housing. We show that financial distress, indexed by foreclosures, being behind in mortgage payments, and changes in house prices were particularly concentrated in households in the bottom 80% of the wealth distribution. These households lost a large part of their wealth and have not yet recovered. Households that were most deeply affected were those who entered the housing market late and took out subprime loans. African American and Hispanic households were particularly susceptible as they bought houses late in the price bubble often with subprime loans.
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African American, Latino, and Native Americans aspire to do well in school but often fall short of this goal. We use identity-based motivation theory (Oyserman, 2007, 2015) as an organizing framework to understand how macro-level social stratification factors including racial-ethnic group membership and socioeconomic position (e.g. parental education, income) and the stigma they carry, matter. Macro-level social stratification differentially exposes students to contexts in which choice and control are limited and stigma is evoked, shaping identity-based motivation in three ways. Stratification influences which behaviors likely feel congruent with important identities, undermines belief that one’s actions and effort matter, and skews chronic interpretation of one’s experienced difficulties with schoolwork from interpreting experienced difficulty as implying importance (e.g., “it’s for me”) toward implying “impossibility.” Because minority students have high aspirations, policies should invest in de-stigmatizing, scalable, universal, identity-based motivation-bolstering institutions and interventions.
Chapter
This chapter has the objective to analyze the implications that the new geography framework of urban agro ecology has on urban planning. It departs from the assumption that the new geography is a theoretical framework for the for the analysis of the economic, social, political, ecological, technological, research, and science based on the interrelationships between urban agro ecology and urban planning. The methodology is based in a constructive analysis of the reviewed theoretical and empirical literature to infer a model based on the construct of the new geography. Finally, it is concluded that urban planning of local governments can formulate and implement strategies based on the new geography framework in urban agro ecology to proving incentives in new urban developments and to benefit disadvantaged communities.
Conference Paper
In this paper, the effect of traveler's nationality on daily travel time expenditure is assessed using data stemming from the 2010 Belgian national household travel survey. In particular, different (zero-inflated) negative binomial models were estimated to isolate the effect of nationality, after controlling for other contributing factors such as socio-demographics, residential characteristics, transport options and temporal characteristics. The results indicate that, even if one controls for a series of other influencing factors, nationality plays a significant role in differences in travel time expenditure. This finding is especially relevant in the development of policy packages that are targeted to tackle social inequalities. From a methodological perspective, different methodological options, i.e. two weighting schemes and two bootstrap solutions, were presented to provide sufficient support for the conclusions. In order to generalize the results in further studies, an oversampling of travelers with a different nationality is strongly recommended. Future research should focus more on the underlying psychological constructs of why ethnic and cultural differences persist, even if one accounts for other determinants.
Article
Rising costs of higher education have prompted debate about the value of college degrees. Using mixed effects panel models of data from the Youth Development Study (ages 31-37), we compare occupational outcomes (i.e., weekly hours worked, earnings, employment status, career attainment, and job security) between educational attainment categories within year, and within categories across years, from 2005 to 2011, capturing the period before, during, and in the aftermath of the Great Recession. Our findings demonstrate the long-term value of post-secondary degrees. Bachelor’s and Associate’s degree recipients, while experiencing setbacks at the height of recession, were significantly better off than those with some or no college attendance. Vocational-Technical degree holders followed a unique trajectory: pre-recession, they are mostly on par with Associate’s and Bachelor’s recipients, but they are hit particularly hard by the recession and then rebound somewhat afterwards. Our findings highlight the perils of starting but not finishing post-secondary educational programs.
Article
Homeownership is consistently associated with better mental health, but whether becoming a homeowner in later in life has positive psychological benefits has not been examined. We assessed whether acquiring a home after 50 is associated with depression in a representative sample of older Americans. We used individual fixed-effects models based on data from 20,524 respondents aged ≥50 from the Health and Retirement Study and interviewed biannually between 1993 and 2010. Depressive symptoms were measured using the 8-item Centre for Epidemiologic Studies Depression scale. Controlling for confounders, becoming a homeowner in later life predicted a decline in depressive symptoms in the same year (β = -0.0768, 95% CI [confidence interval]: -0.152, -0.007). The association remained significant after two years (β = -0.0556, 95% CI: -0.134 to -0.001) but weakened afterwards. Buying a home for reasons associated with positive characteristics of the new house or neighborhood drove this association (β = -0.426, 95% CI: -0.786, -0.066), while acquiring a home for reasons associated with characteristics of the previous home or neighbourhood, the desire to be closer to relatives, downsizing or upsizing did not predict mental health improvements. Findings suggest that there are small but significant benefits for mental health associated with acquiring a home in older age.
Article
Studies of the mortgage industry’s impact on racial stratification have long focused on racial disparities found between white and black homeowners. Ample research demonstrates that unequal access and treatment between white and black home seekers has created major differences in the type of loan products they are offered in the marketplace. While numerous studies also document disadvantaged Latino homebuyers, studies have yet to examine racial variation within the Latino population. This paper draws on annual data from the Home Mortgage Disclosure Act (HMDA) from 2010 to 2017 to assess variation in racial disparities among Latinos in loan outcomes and compares them to Non-Latino whites, blacks, Asians, and Others. I show that loan rejections and high cost originations are highest among black Latinos and lowest among white and Asian Latinos. Other Latinos perform somewhere in the middle. These trends are particularly true when examining mortgage denials. When comparing Latino racial groups to Non-Latinos, the observed lending patterns provide evidence of a tri-racial hierarchy in the mortgage market.
Article
The subprime boom and subsequent foreclosure crisis highlighted risk associated with pursuit of the American Dream of homeownership. People of color and those living in segregated areas were particularly harmed by the dramatic rise and fall of the housing market. Almost a decade after the economy’s collapse, questions remain about racial and spatial disparities in access to mortgage credit. I leverage Home Mortgage Disclosure Act data to explore mortgage application outcomes in 2014. Well into the economy’s recovery, minority borrowers remained at a disadvantage in the mortgage approval process. Whereas 71% of White applicants were approved for home loans, approval rates were lower for Asians (68%), Latinos (63%), and Blacks (54%). Black and Latino borrowers were also significantly more likely to receive higher cost loans than Whites, a practice that has accelerated since the foreclosure crisis. Results suggest that segregation exacerbated racial disparities as lenders funneled expensive credit into isolated minority communities. Furthermore, the differences between White and minority outcomes were largest in census tracts where subprime lending was common in 2006 and foreclosures accumulated during the Great Recession. Together, these findings indicate how spatially organized markets have racialized consequences in a highly segregated society.
Article
The mortgage industry has long been central to racially and ethnically stratified access to homeownership. Liberalized access to credit during the 1990s and early 2000s targeted subprime and other high-cost loans to individuals and communities of color. This article draws on annual data from the Home Mortgage Disclosure Act (HMDA) from 2004 through 2017 to assess short-term variation in racial and ethnic disparities in loan outcomes associated with the Great Recession. We show that, relative to the boom, this period is associated with a reduction in disparities in loan outcomes between non-Hispanic whites and Asians on the one hand and blacks and Latinos on the other. This is particularly true for the disproportionate channeling of black and Latino applicants into high-cost loans, and in communities with higher minority concentrations. As the economy and access to credit improved, particularly after 2011, black and Latino over-representation in high-cost loans began to rebound, though ethno-racial disparities in loan rejection continued well below levels observed during the boom years. The return of inequality in high-cost lending is particularly troubling in light of the sharp drop in minority applications. Implications for ethno-racial stratification are discussed.
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In recent decades, the racial wealth gap has widened with extant literature reporting that Black and Latinx families hold fewer assets than white families. One such asset that receives substantial attention because of its wealth-generating principles is homeownership. Whereas intergroup homeownership inequalities are found throughout the literature, less is known about racialized inequality within groups. Latinxs provide a novel case for exploring how racialized homeownership inequality is structured within an ethnic group. Using data from the American Community Survey, we examine the odds of homeownership and predicted logged home values among Latinxs. We find that the association between race and housing outcomes varies substantially across Latinx groups. Drawing from theories of Latinx racial identity and the future of racial structures, we discuss the implications of our findings for understanding racial inequality among Latinx groups.
Chapter
The United States is a diverse country which includes a vast tapestry rich in cultures, ethnicities, languages, and religions. The robust diversity is what defines the nation, its character, its identity, and its strength. This rich tapestry of diversity also provides the nation with a unique status among all nations and is viewed as a nation of immigrants. One aspect of such diversity is the complicated nature of social interactions between and among people who have different perceptions about the world. Often one's perception effects behavior in social interactions having positive or negative results. Using two theories, Symbolic Interaction and Cognitive, this chapter guides the reader to understanding the complicated relationships that arise when one interacts with and among others who may not perceive the world in the same manner.
Article
The United States continues to be defined by racial concentration, where most racial/ethnic groups live apart from each other. For homeownership, neighborhoods with large proportions of racial minorities are often linked to negative outcomes for minority homeowners; this was particularly the case during the Great Recession. However, middle and upper income ethnic neighborhoods, or resurgent neighborhoods, have grown in numbers because of a concentration of immigrants, federal policies favoring professionals, ethnic-specific resources, and affluence. In 2007, about 37% of Los Angeles, California, Latino tracts were resurgent and 53% of Asian tracts were resurgent. This study finds that homeowners in resurgent neighborhoods had lower default/foreclosure rates and predicted probabilities than those in low-income neighborhoods. Asian resurgent neighborhoods had the lowest predicted probabilities of default or foreclosure, followed by Latino resurgent and White middle-class neighborhoods. There were also discrepancies among Asian neighborhoods based on nativity. Consequently, it is important to recognize that minority neighborhoods are heterogeneous, with differing impacts on homeownership opportunities when examined by class.
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Maternal depression is a risk factor for the development of problem behavior in children. Although food insecurity and housing instability are associated with adult depression and child behavior, how these economic factors mediate or moderate the relationship between maternal depression and child problem behavior is not understood. The purpose of this study was to determine whether food insecurity and housing instability are mediators and/or moderators of the relationship between maternal depression when children are age 3 and children’s problem behaviors at age 9 and to determine whether these mechanisms differ by race/ethnicity. We used data from the Fragile Families and Child Wellbeing Study. Food insecurity and housing instability at age 5 were tested as potential mediators and moderators of the relationship between maternal depression status at age 3 and problem behavior at age 9. A path analysis confirmed our hypothesis that food insecurity and housing instability partially mediate the relationship between maternal depression when children are age 3 and problem behavior at age 9. However, housing instability was only a mediator for externalizing problem behavior and not internalizing problem behavior or overall problem behavior. Results of the moderation analysis suggest that neither food insecurity nor housing instability were moderators. None of the mechanisms explored differed by race/ethnicity. While our findings stress the continued need for interventions that address child food insecurity, they emphasize the importance of interventions that address maternal mental health throughout a child’s life. Given the central role of maternal health in child development, additional efforts should be made to target maternal depression.
Article
In the United States after the Great Recession, despite growing attention to low-income households’ homeownership vulnerability, the existing works tend to take specific angles and produce only piecemeal evidence. By placing liquid assets’ function of mediating financial hardships in the context of homeownership dynamics, I establish a synthesized conceptual framework. Based on data from the Panel Study of Income Dynamics (PSID), I put this framework to a test and find that liquid assets not only reduce the risk of homeownership exit in general but play a pivotal role in accounting for low-income borrowers’ elevated rates of exit. I discuss policy implications of the findings at the end of the paper.
Article
During the Great Recession, policymakers and advocates for the poor raised concerns that the foreclosure crisis, which forced millions from their homes, was causally linked to the concurrent rise in homelessness. Despite these warnings—and the widespread consequences of the economic collapse on the housing market—no national-level research has evaluated the connection between foreclosures and homelessness. In this study, I combine homelessness data from the U.S. Department of Housing and Urban Development (HUD) with foreclosure data from RealtyTrac to analyze changes over time in both phenomena on the metropolitan level. I find that foreclosures within a given year are significantly correlated with homelessness in the following year net of controls for demographic, housing, and economic characteristics, regional time trends, and metropolitan area fixed effects. This relationship is strongest among single homeless individuals (compared with families) and the unsheltered population. These descriptive findings carry important implications for our understanding of the Great Recession’s consequences and demonstrate the need for expanded data collection on homeless populations, with which we can better understand whether and how foreclosure leads to homelessness.
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How do transportation policies impact electoral politics? Empirically, the question is difficult to answer because policies that create new transit opportunities may involve a large number of community effects. In this manuscript, we focus on a unique kind of transportation intervention—the replacement of human-operated with electronic tolls on highways—which economic theory predicts should have a concentrated effect on local property values. We find that the shift in local property values following a government program to introduce electronic tolling is correlated with a subsequent change in support for conservative candidates in presidential elections. Geographically-linked exit polling data suggests that concern over taxation is the primary observable mechanisms. To show robustness, we use various measures, one of which is computed at the individual level. We also present placebo analyses to address worries that the correlations are driven by community change, turnout, or rising incomes. Remaining limitations are also considered.
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Recently, the homeownership rate of immigrants in Germany has increased by more than 20 percentage points. To shed light on this sharp rise, this paper investigates the driving forces of the trend in the homeownership rate of immigrant households in Germany between 1996 to 2005 and 2001 to 2011 using a probit-based non-linear decomposition method. Empirical findings suggest that 50 % of the change in immigrants’ homeownership rate within the first time period can be explained by characteristics such as age and educational attainment. In the second time period, the explanatory power of characteristics is almost zero, indicating that it is rather the favorable economic and institutional environment as well as changes in immigrants’ tenure choice process that contributed to the substantial increase in immigrants’ homeownership rate in Germany. We additionally find that housing quality of immigrant homeowners has slightly improved as well, but that there is still a substantial nativity gap in housing quality among tenants as well as among owners.
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Historically, black Americans have been disproportionately at the bottom quantiles of the wealth distribution. As the choice of making any investment that can increase future wealth requires equating an asset's price to its return adjusted by a stochastic discount factor, this article considers if black‐white differences in the risk of incarceration, which can reduce the intertemporal marginal rate of substitution in consumption, matters for black‐white differences in wealth. With repeated cross‐section data from the U.S. General Social Survey, we estimate the parameters of ordinal regression treatment specifications of individual wealth levels to measure the effects of incarceration risk on wealth. Parameter estimates reveal that individual wealth levels vary inversely with incarceration risk. As black Americans have relatively higher incarceration risks, this suggests that at least part of the black‐white wealth gap can be explained by racial differences in incarceration risk. Criminal justice reforms that reduce black‐white disparities in incarceration rates could also reduce black‐white disparities in wealth.
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Research has documented that immigrants have moved in large numbers to almost every metropolitan area and select rural areas in the US. In the midst of these demographic shifts, the country has experienced a profound recession. To date, there has been little research on the impact of the recession on immigrants across the US. Using 2006 and 2009 American Community Survey microdata, the paper assesses how the recent economic crisis has affected Latino and Asian immigrants with respect to two housing outcomes (homeownership and headship) over two important time points in the recent economic cycle. Immigrants have worse housing outcomes and significantly lower mobility rates after the recession. Regression results suggest that the negative impacts from the recession are strongest in the gateway metropolitan areas and that, after controlling for residence in the hardest-hit areas, increases in metropolitan-level unemployment and mortgage delinquency rates have a negative impact on homeownership rates. The results also suggest that, even though the recession has disrupted immigrants' upward trajectory in the housing markets, the effect has not been as severe on immigrants as one might expect. In particular, the places where immigrant populations are newest have not experienced as large a reduction in homeownership as those in the large immigrant gateways. Even in the established gateways, the decline in homeownership has been smaller for immigrants than for US-born households.
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This paper is based on a comparison of residential segregation (D) scores for Anglos, Blacks, Latinos, and Latino subgroups at the metropolitan area level. The results for Puerto Ricans show that where Puerto Ricans and Anglos have similar levels of suburbanization and similar levels of income, residential segregation declines. Similarly, as the gap in owner-occupied housing values between Puerto Ricans and Anglos narrows, their residential segregation declines. Finally, in metro areas where Latino denial rates exceed the Anglo denial rates, residential segregation increases.
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Homeownership plays an important role in the socioeconomic well-being of Americans. Despite recent major losses in wealth due to the subprime market crash, home equity remains the largest source of wealth for the average American family. A marker of class status, owning one's home provides access to neighborhoods with the best schools, quality public services, and lowest crime. This article demonstrates that minorities have not had the same access to homeownership that Whites have, and this contributes to continuing socioeconomic disparities between Whites and minorities. This article explores the homeownership experience of Blacks – including African-Americans, Caribbeans, and Africans – Hispanics, and Asians in the United States relative to non-Hispanic Whites. Minorities rely heavily on homeownership and home equity as the key component of their wealth and remain less likely than Whites to hold alternative forms of investment such as stocks. The role that homeownership plays in perpetuating intergenerational wealth disparities between Whites and minorities is discussed as are challenges to minority homeownership such as the pervasiveness of risky mortgage products. Exploring the racial gap in homeownership is fundamental to understanding racial inequalities and formulating strategies and policies to help close such disparities. This article concludes with suggestions for future research.
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The literature on the black middle class has focused predominantly on married-couple families with children, reflecting a conception of the black middle class as principally composed of this family type. If that conception is correct, then declining rates of marriage and childrearing would imply a decline in the presence and vitality of the black middle class. Indeed, this is the implication that researchers typically draw from the decline in black marriage rates. However, an alternative view suggests that the decline in marriage and childrearing is producing a shift in the types of households comprising the black middle class. This paper assesses – and affirms – that alternative view. This research shows that, indeed, never-married singles who live alone (Love Jones Cohort) constitute a rapidly growing segment of the black middle class, a development which requires rethinking how the black middle class is conceptualized and studied.
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Race and Ethnic Studies/Sociology/Critical Race Theory
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Examines the path from basic banking services to creditmaking decisions to mortgage lending that can give low-income individuals and communities the opportunity to build assets through credit, highlighting the need for transparency in the subprime market, buyer education, and borrower safeguards.
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The United States holds the dubious distinction of having the most unequal income distribution of any advanced industrialized nation. While other developed countries face similar challenges from globalization and technological change, none rivals America’s singularly poor record for equitably distributing the benefits and burdens of recent economic shifts. In Categorically Unequal, Douglas Massey weaves together history, political economy, and even neuropsychology to provide a comprehensive explanation of how America’s culture and political system perpetuates inequalities between different segments of the population. Categorically Unequal is striking both for its theoretical originality and for the breadth of topics it covers. Massey argues that social inequalities arise from the universal human tendency to place others into social categories. In America, ethnic minorities, women, and the poor have consistently been the targets of stereotyping, and as a result, they have been exploited and discriminated against throughout the nation’s history. African-Americans continue to face discrimination in markets for jobs, housing, and credit. Meanwhile, the militarization of the U.S.-Mexican border has discouraged Mexican migrants from leaving the United States, creating a pool of exploitable workers who lack the legal rights of citizens. Massey also shows that women’s advances in the labor market have been concentrated among the affluent and well-educated, while low-skilled female workers have been relegated to occupations that offer few chances for earnings mobility. At the same time, as the wages of low-income men have fallen, more working-class women are remaining unmarried and raising children on their own. Even as minorities and women continue to face these obstacles, the progressive legacy of the New Deal has come under frontal assault. The government has passed anti-union legislation, made taxes more regressive, allowed the real value of the federal minimum wage to decline, and drastically cut social welfare spending. As a result, the income gap between the richest and poorest has dramatically widened since 1980. Massey attributes these anti-poor policies in part to the increasing segregation of neighborhoods by income, which has insulated the affluent from the social consequences of poverty, and to the disenfranchisement of the poor, as the population of immigrants, prisoners, and ex-felons swells. America’s unrivaled disparities are not simply the inevitable result of globalization and technological change. As Massey shows, privileged groups have systematically exploited and excluded many of their fellow Americans. By delving into the root causes of inequality in America, Categorically Unequal provides a compelling argument for the creation of a more equitable society.
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Are housing prices lower in neighborhoods with high concentrations of black residents? If so, is this relationship evidence of pure discrimination, or can it be explained by considering nonracial neighborhood traits? These questions derive their importance from the link between mobility patterns and residential segregation, and the consequent relationship between high levels of segregation and a host of deleterious outcomes. I assess the magnitude and motivations of racial aversion by conducting a hedonic price analysis of geocoded data from the Panel Study of Income Dynamics. I find clear evidence of lower property values in neighborhoods with relatively high proportions of black residents. However, whether it is blacks' race or their socioeconomic status that affects property values depends on whether housing units are rented or owner-occupied.
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This article suggests that, at the root of the Great Recession are two imbalances: an unsustainable distribution of income in advanced economies and a growing income gap between them and the rest of the world. Several factors have squeezed the share of labor income, particularly of less skilled workers in advanced capitalist economies, and hugely increased the share of capital income (sometimes disguised as pay for the work of top managers). In the United States and elsewhere, the demand for consumer goods did not fall until the recent Great Recession thanks to the growth of private debt. A progressive income redistribution policy is seen as the core structural reform needed to rebalance the system, along with a change in international economic relations.
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Southern blacks and whites began moving to northern and western cities in large numbers during the second decade of the twentieth century. City-level and ward-level data for 103 northern and western cities are used, along with the 1920 Public Use Microdata Sample, to investigate variation in neighborhood characteristics by race and migration history in 1920. The results of multi-level analyses reveal sharp differences between blacks and whites in the racial composition and quality of residential neighborhoods, even after controlling for a variety of sociodemographic characteristics. Regional origin also affects neighborhood outcomes, primarily because of the racial differences in the urban locations of southern migrants. Black migrants experienced a relative residential disadvantage because of their greater concentration in cities that constrained their residential opportunities. In contrast, white migrants selected destinations that enhanced their locational attainment. These findings highlight the importance of the larger social and economic context in the structuring of group differences in residential outcomes and point to the need for additional research into the selection of destinations by the participants in the Great Migration.
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America is now half a decade into the worst economic crisis since the Great Depression, triggered by a deeply racialized “innovation” at the social and spatial margin—risky, high-cost mortgage lending—that went mainstream. Predatory capital perfected its operations in poor and working-class black neighborhoods of the deindustrializing inner city, before pursuing the greater volume available across a multiracial array of postindustrial Sun Belt suburbanites. In this article, we map the dangerous spatial configurations of law that reproduced these evolving exploitations. The catastrophic aftermath of predatory financialization may have destabilized the alliance between economic and cultural conservatives that structures so much of America’s racial political economy.
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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.
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This paper investigates the interplay between nativity and both homeownership and foreclosure in Miami‐Dade County, Florida at both the individual and community levels. We estimate the likelihood of individual‐level home ownership based on place of birth and year of entry to the U.S., and separately estimate community‐level foreclosures based on the demographic composition of neighborhoods. Results confirm previous work: all subgroups, except Cubans, are less likely to be homeowners than white, non‐Hispanics and only Cuban neighborhoods had foreclosure rates significantly lower than rates in white, non‐Hispanic neighborhoods. Nativity has a stronger effect on homeownership than on foreclosure levels.
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Home ownership has traditionally served as an efficient wealth generating mechanism for the American middle class. Recent data indicating an increase in the metropolitan area black population living in the suburbs raise two questions: is black suburbanization equivalent to home ownership, and does black suburban homeownership lead to equity accumulation and the generation of wealth? These questions are addressed through analysis of a national sample of suburban housing units surveyed in 1974, and again in 1975, as part of the Census Bureau's Annual Housing Survey. As of the mid-1970s, black suburbanization has not been entirely synonymous with homeownership nor has homeownership automatically served the wealth generating function for blacks that it has provided for earlier suburbanizing aspirants to the middle class.
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I find that median wealth plummeted over the years 2007 to 2010, and by 2010 was at its lowest level since 1969. The inequality of net worth, after almost two decades of little movement, was up sharply from 2007 to 2010. Relative indebtedness continued to expand from 2007 to 2010, particularly for the middle class, though the proximate causes were declining net worth and income rather than an increase in absolute indebtedness. In fact, the average debt of the middle class actually fell in real terms by 25 percent. The sharp fall in median wealth and the rise in inequality in the late 2000s are traceable to the high leverage of middle class families in 2007 and the high share of homes in their portfolio. The racial and ethnic disparity in wealth holdings, after remaining more or less stable from 1983 to 2007, widened considerably between 2007 and 2010. Hispanics, in particular, got hammered by the Great Recession in terms of net worth and net equity in their homes. Households under age 45 also got pummeled by the Great Recession, as their relative and absolute wealth declined sharply from 2007 to 2010.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
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Federal programs have consistently encouraged ever-lower-income households to buy homes, despite concerns about the long-term sustainability and desirability of homeownership from the perspective of wealth-building, especially since the recent housing market collapse and the epidemic of mortgage foreclosures. We ask in this paper: can very low-income households build wealth through sustainable homeownership, with the aid of an innovative public program? We answer this question by examining 122 very low-income households who purchased their homes between 1996 and 2007 after completing an extensive asset-building and homeownership education/counseling program offered by the Housing Authority of the City and County of Denver (DHA), called HOP. We analyze our own longitudinal surveys and focus groups, as well as data compiled from administrative agency sources, real estate records, and longitudinal census data from the Neighborhood Change Database and the Piton Foundation's Neighborhood Facts Database. We find that homeownership attained through HOP typically did provide very low-income households with opportunities to build home equity (both absolutely and relative to generic homeowner cohorts in Denver) and net wealth, although this was contingent on time of purchase and ethnicity. Our multivariate analyses revealed that changes in annualized home equity appreciation were associated with the ethnic composition of the neighborhood and age of property. Annualized wealth accumulation was associated with annualized home equity appreciation, being married throughout the tenure of homeownership, and year of home purchase. HOP homebuyers received exceptionally favorable initial mortgage terms and conditions, often enhanced with down-payment assistance from their own DHA escrow account or from local housing and neighborhood development organizations, resulting in a dramatically low rate of default and foreclosure to date. Moreover, HOP homebuyers were not immune to financial stresses, and the continuing lack of wealth for many makes them vulnerable to future interruptions in primary wage earner's employment or health. We discuss the implications for low-income homeownership policy and argue that the goal of expanding homeownership opportunities should not be abandoned.
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As the homeownership rate in the United States reached its highest ever level in 2004, the distribution of homeownership remained uneven along racial and ethnic lines. Using data from the 2005–2007 3-Year Sample of the American Community Survey (ACS), this paper employs a multivariate regression model and a decomposition technique to delineate the socio-economic and demographic characteristics as well as the immigration and spatial patterns that shape racial and ethnic inequality in homeownership. The findings reveal three distinct patterns; the Asian-white homeownership gap is explained entirely by differences in immigration and spatial patterns of residence, whereas the disadvantage of blacks and Puerto Ricans is attributable to demographic, socio-economic and unobserved factors. For Mexicans and other Hispanics, all four sources influence homeownership patterns, with socio-economic factors relatively important for Mexicans and spatial variables relatively important for other Hispanics.
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The Housing Act of 1949 pledged a decent home for every American family. This article examines how that promise has been met through homeownership. It traces the evolution of mortgage markets and federal homeownership policies from the post‐World War II era to the end of the 20th century and it concludes by identifying the challenges now facing the nation.Initially, the act displaced lower‐income families and fostered segregation. In the aftermath of the civil rights movement, Congress invoked the act to extend home‐ownership opportunities to lower‐income families and racial minorities. Despite early failures, federal initiatives, together with a maturing mortgage market and a favorable economic climate, have increased homeownership rates. These gains notwithstanding, affordability and lagging homeownership rates for minorities pose critical challenges that must be met in the new millennium.
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This study focuses on the transition out of homeownership among community reinvestment loan borrowers, documenting patterns among low‐income and minority households. We show that the higher rates of home‐ownership exit documented among low‐income and minority borrowers in the larger population do not hold for community reinvestment mortgage borrowers. We model the transition, separating the determinants of mobility and tenure choice. Our results show that low‐income and minority homeowners are less likely than their high‐income and white counterparts to move, but no less likely to purchase a new home when they do. These findings are contrasted with the results of a model that specifies the transitions out of homeownership as the purchase of a new home and the return to renting.
Article
This article links longitudinal data from the Panel Study of Income Dynamics with information on respondents' census tracts to examine patterns of annual residential mobility between poor and nonpoor neighborhoods. Education and marriage increase the likelihood of leaving poor tracts, while age, home ownership, and receiving public assistance reduce it. Blacks are substantially less likely than whites to escape poor tracts and substantially more likely to move into them, even after socioeconomic status is controlled. Residential segregation by race and poverty status and the supply of new housing in the metropolis also influence the likelihood of moving between distressed and nondistressed neighborhoods.
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Sociologists have a long tradition of studying the effects of differentials in indicators of socioeconomic status by race. In fact, since Duncan’s classic study on poverty, differences on such indicators have often been considered a measure of the “cost of being black.” This paper employs the new paradigm in the study of population, Critical Demography, to develop a measure of racism based upon estimates of the differentials in wealth, status and power. Specifically, the study asks three questions: (1) How is racism measured relative to wealth, status and power in the United States? (2) Based upon this measure, how has racism changed over time? and (3) What are the theoretical implications of this measure for the study of race and ethnicity in sociology, demography and the social sciences in general? The findings provide evidence of Mertonian serendipity: once macro-level measures of racism are controlled, blacks actually exceed whites in levels of education, income and housing values. The paper concludes with a discussion of the policy implications of measuring racism from a Critical Demography perspective.
Article
The publication of American Apartheid (Massey & Denton 1993) was influential in shifting public discourse back toward racial residential segregation as fundamental to persisting racial inequality. At the end of the twentieth century, the majority of blacks remained severely segregated from whites in major metropolitan areas. Due to the persistence of high-volume immigration, Hispanic and Asian segregation from whites has increased, although it is still best characterized as moderate. This review examines trends in the residential segregation of blacks, Hispanics, and Asians and recent research focused on understanding the causes of persisting segregation. This discussion is organized around two broad theoretical perspectives - spatial assimilation and place stratification. After detailing the consequences of segregation for affected groups, I identify gaps in our understanding and goals for future research.
Closing the racial wealth gap must be at the forefront of the civil rights agenda in the twenty-first century. This Essay examines homeownership as a main policy strategy to move toward this goal. The Essay opens by restating the crucial importance of closing the racial wealth gap, and offers an early assessment of this agenda. Next, the Essay argues that homeownership is an appropriate strategy to attack the racial wealth gap. Finally, the Essay examines the various promises and many potential pitfalls and challenges facing minority homeownership.
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Theories of metropolitan development in the United States explain that higher status populations tend to occupy newer housing while lower status groups tend to be restricted to older housing. The housing system thus reflects the broader stratification structure and likely changes in response to important shifts like the steep rise of income inequality at the end of the twentieth century. Indeed, a striking trend of increasingly large houses with many amenities emerged in U.S. metropolitan areas during this period, indicating that new construction may have become ever more exclusive and targeted to the affluent as inequality rose. In this article, I investigate whether the stratifying impact of new house construction intensified along with growing inequality and changing house structures using a variety of U.S. Census Bureau sources, examining both trends in the income level of new house buyers and the relationship of housing growth to affluent residential segregation. I find striking evidence that new housing did become much more dominated by the affluent, and was increasingly stratifying and segregating at the end of the twentieth century. These changes may exacerbate inequality in the future through opportunity structures linked to place of residence, including access to education and the accumulation of housing equity.