How COVID-19 threatens black homeownership
May 18, 2020
In today’s Daily Download episode, HousingWire Digital Producer Alcynna Lloyd interviews The Urban Institute‘s Alanna McCargo to discuss how the COVID-19 pandemic is likely to impact America’s black homeownership rate.
For some background on the interview, here’s what has happened in the industry so far:
Last year, the homeownership rate for black Americans fell to 40.6% in the three months through June, the lowest level in the Census Bureau’s quarterly data going back to 1994, according to a government report. It was the smallest share recorded for black households since the 1950 decennial Census when it was 34.5%.
After the 1968 Fair Housing Act banned discrimination in real estate practices, the homeownership rate for black Americans climbed steadily to a record high of 49.7% in 2004’s second quarter and stayed near that level for two years, according to Census data.
The downward trajectory began in 2007 when predatory home loans started going into default, sparking a financial crisis that spread across the globe as trillions of dollars in mortgage securities lost value.
While the overall U.S. homeownership rate fell from 68.4% at the beginning of 2007 to 64.1% in 2019’s second quarter – a drop of just over four percentage points – the decline for black Americans was much steeper. The rate went from 48% to 40.6%, dropping more than seven percentage points.
And now data shows, that the Coronavirus pandemic is likely to worsen prospects for Black Americans, which will lead to a larger gap in the homeownership rate.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: