The drop in home ownership has grown so severe that it could impede wealth creation for generations of minority families, said Antoine Thompson, executive director of the National Association of Real Estate Brokers, the nation's oldest minority trade association.If we saw these same numbers during a Bush administration then there would be protests in the streets about the issue.
"We lost a lot of wealth," Thompson said. "We are reaching epidemic and crisis levels in black America."
The decline dovetails with a broader shift toward renting in the aftermath of the housing bust. An analysis by The Associated Press has found that rising rental costs and stagnant pay are making it harder to save to buy a home. Longtime homeowners, by contrast, have enjoyed rising home equity and lighter mortgage bills resulting from lower mortgage rates.
The problem is most pronounced among minorities who already had lower ownership rates before the bubble. Actions such as "redlining" — which for decades denied loans to minorities — excluded black neighborhoods from government-backed mortgages. This made it harder for minorities to buy even as the U.S. economy surged after World War II and overall home ownership rates climbed.
Many minority homeowners who bought or refinanced during the bubble eventually became trapped by predatory mortgages, some requiring no money down and monthly payments that eventually ballooned.
Just 41.5 percent of black households own their homes, down from nearly 50 percent in late 2004, according to the Census Bureau. The share of Hispanic homeowners dropped to 45.3 percent from roughly 50 percent. Both drops were sharper than the decline in white home ownership — to 72.1 percent from roughly 75 percent.
The Urban Institute forecast last year that Hispanic home ownership will rise slightly through 2030 but that black homeownership will tumble to 40 percent by 2030 if U.S. economic growth is about average and 38 percent if growth is slow.
The Congressional Black Caucus, Al Sharpton and every other self designated black leaders would be screaming from the rooftops.
Instead all we hear is silence. My pet theory is a desire by the community to protect the President. My question to anyone that has even a hint of common sense is why would you protect someone that isn't looking out for your best interests? Health care? Give me a break. Unemployment and other economic factors are destroying the community and is all anyone talks about in the barbershops and watering holes...but again...no one in "leadership" is talking about it.
Reason #2 tomorrow.
Note: Thanks to Brian W. and Jandanagger Laterobinson for the idea to do this series...their contention that all is well forced me to confront that nonsense head on.