Monday, May 27, 2024

White Homeowners Saw Greater Price Appreciation for their Homes than Blacks in Some Areas

*The rates of black homeownership are in a complete free fall. This over-all decline has been present since 2004 and has steadily been plummeting since. The problem, however, is that Black homeowners in particular have been targeted disproportionately.

Now, the homeownership rates for African American rates are on its lowest since the last 50 years – since as far back as the Fair Housing Act of ’68. This crisis is so significant that that many of these homeowners are even considering not buying homes anymore according to a Professor in Georgia State University.

Some studies have even found that homeownership for the Black community carries much more risk than an upside. The problems that are constituting to this plummet constitutes of poor enforcements of fair housing laws, damaged credit scores and tighter credit markets for the Black community.

The reason for this steep is owed to the fact, according to recent studies, that Black people do not have enough purchasing power since the foreclosure crisis. Those people who did buy homes did alright as opposed to the White community; if not better.

In order to minimize the risk-based pricing of the mortgage market will be vital in order to expand the ownership of Black homes in America. How can this be done though? Well America can start by privatizing Fannie Mae and Freddie Mac. By doing this, the federal government would have enabled all the lenders in the market to assign much greater weight for risk in prices.

Once this has been done, it will be critical for the government to ensure that all financial instruments remain safe. If regulations are stripped then this could be a signal of the fact that subprime mortgages are on the return alongside many other predatory products.

Even historically, Black households have always struggled to achieve the same level of mortgages for the very same homes and neighborhoods as White people. Now the Black community can be seen buying houses in those areas that aren’t majority anything. This means that the Black homeownership is part of something that can be described as a close-in, diverse and emerging American suburb.

If, however, homeownership in America needs to make any move against the racial wealth gap, then policies will have to be made that expand the rank of Black people.

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