Black households, as well as the poorest households and those headed by high school dropouts, did not benefit much from the housing boom, but got hit hard by the subsequent bust, a new analysis of Census data by Fordham University Professor Emily Rosenbaum has found.
During the 1990s, blacks and Hispanics made gains that narrowed the home ownership gap. This rise was partly a result of the Clinton administration pushing for increased ownership rates among the traditionally underserved.
That effort, however, largely stalled for blacks and lower-income folks in the first half of the next decade. Meanwhile, Latinos and Asians, made significant gains during the bubble.
Then came the housing bust. The collapse hit blacks the hardest, pushing them well below their home ownership rate at the start of the decade, Rosenbaum found. Some 48.3% of blacks owned their own home in 2001, a figure that crept up to 49.6% by 2005. But six years later, it plummeted to 44.6%.
Whites, who saw their home ownership rate creep up 1.6 percentage points to 76.2% mid-decade, fell back to just below their 2001 levels.
While Hispanics and Asians saw their home ownership rates fall during the bust, both groups had higher ownership rates in 2011 than in 2001.
A similar trend held for education and income level. Those with less than four-year college degrees saw their ownership rates fall well below their 2001 levels, while those with bachelors or advanced degrees held on better.
Same goes for those in the bottom 40% of income. Their tiny gains were subsumed by big losses in home ownership later in the decade. Meanwhile those in the top 20% of the income spectrum came out slightly ahead of where they were in 2001.
Rosenbaum's analysis was part of the US2010 Project, which researches changes in American society.
Hispanics and Asians suffered a lower rate of job loss in the recession and enjoyed a faster rate of growth during the recovery than their black and white counterparts.
Hispanics experienced only a 2.4% loss in employment during the Great Recession, followed by a 6.5% gain during the recovery, according to a new report from the Pew Hispanic Center.
Asians had a similar experience, with a 2.8% job loss and a 6.8% MORETami Luhby - Mar 21, 2012 11:05 AM ET
The racial wealth gap between black and white Americans might be wider than you think.
Consider this: The median household wealth of blacks was a mere $5,677 in 2009, just 5% of the $113,149 median wealth of whites, according to the Pew Research Center.
That chasm of difference in financial assets is one reason why black families are seven times more prevalent in homeless shelters than white families, according to a new MORETami Luhby - Mar 5, 2012 9:13 AM ET
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.86%||3.77%|
|15 yr fixed||3.09%||3.01%|
|30 yr refi||3.84%||3.78%|
|15 yr refi||3.10%||3.01%|
Today's featured rates:
|Latest Report||Next Update|
|Home prices||Aug 28|
|Consumer confidence||Aug 28|
|Manufacturing (ISM)||Sept 4|
|Inflation (CPI)||Sept 14|
|Retail sales||Sept 14|
|Bill O'Reilly portrays himself as the victim in interview with New York Times|
|'Outrageous:' Gretchen Carlson and others react to new Bill O'Reilly revelation|
|Richard Branson to parents: Work from home, if you can|
|Trump promises tax reform won't impact 401(k) plans|
|Unsent letter from Titanic passenger sets auction record|