The Racial Wealth Divide in 2043 Homeownership Parity and the Racial - PowerPoint PPT Presentation

Doug Ryan Director of Affordable Homeownership Prosperity Now Solutions for Affordable Housing NHC 2017 National Housing Policy Convening November 29, 2017

The Racial Wealth Divide in 2043

Homeownership Parity and the Racial Wealth Divide

Housing Remains Main Form of Wealth for Low-Income and Minority Households Low-Income Households Minority Households Median Wealth (Thousands of 2013 dollars) 100 Median Wealth (Thousands of 2013 dollars) 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 1992 2004 2007 2010 2013 1992 2004 2007 2010 2013 Homeowner Housing Wealth Homeowner Non-Housing Wealth Renter Total Wealth Notes: Medians for housing and non-housing wealth are calculated independently of one another and therefore do not sum up to total median net wealth Non- housing wealth includes cash savings, savings in retirement accounts, stocks and bonds. Values are adjusted for inflation with the CPI-U for All Items. Low income households are in bottom income quartile for each year. Source: JCHS tabulations of Federal Reserve Board, Survey of Consumer Finances.

The Homeownership Gap Has Narrowed for Hispanics and Asians, But Widened for Blacks Cumulative Change in Homeownership Rate (Percentage points) Homeownership Rate in 2016 (Percent) 14 80 12 70 10 60 8 50 6 40 4 30 2 20 0 10 -2 0 All White Asian/ Hispanic Black Other White Black Hispanic Asian/Other Notes: Hispanics may be of any race. White, black, and Asian/other are non-Hispanic and include households reporting a second race until 2003. After 2003, Asian/other includes all other households and households reporting more than one race. Source: JCHS tabulations of Housing Vacancy Survey data.

Rates Have Fallen Below 1990 Rates for All But Oldest Age Groups Change in Homeownership Rate Since 1990 (Percentage Points) 10 8 6 4 2 0 -2 -4 -6 -8 -10 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Age of Household Head 25-34 35-44 45–54 55–64 65-74 75 and Over

Prime Credit Scores and Race

Tight Lending Standards Limit Mortgage Access 100 90 80 70 60 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Credit Score Below 620 620–659 660–699 700–739 740 and Higher Note: Data include only conventional first-lien purchase mortgage originations. Source: JCHS tabulations of CoreLogic data.

Who’s Going to Buy Your (California) House in 2020? 120,000 Net buyers 90,000 Number of Buyers Less Sellers 60,000 Hispanic 30,000 Asian and Pacific Islander 0 Black Non-Hispanic White -30,000 -60,000 Net sellers -90,000 Source: Dowell Myers, Immigrants and Boomers, Figure 11.3, 2007 -120,000 Under 35 35-44 45-54 55-64 65-74 75+

Doug Ryan Director of Affordable Homeownership Prosperity Now dryan@prosperitynow.org 202-207-0155