A survey by the MacArthur Foundation reveals the affects of the housing downturn on Americans along racial lines. From the get go, whites are more likely to own homes, and those homes are just as likely to be in neighborhoods where home values appreciate. Blacks and Latinos were more likely to be negatively impacted by the housing downturn, reversing years of progress in homeownership, forcing some to move to less desirable neighborhoods that appreciate less, if at all. Historical barriers to homeownership make people more vulnerable to the rise in housing costs. Over seventy percent of blacks and nearly eighty percent of Latinos think the country is still in the middle of the housing crisis, and many of those think the worst is yet to come.

Others move into the rental market, where rents are rising, according to npr.org. Nearly 60 percent of blacks and Latinos pay above 30 percent of their income in rent, which is the traditional measure of household affordability. However, 53 percent of Latinos still see homeownership as an excellent investment, compared to 47 percent of blacks, as MHProNews has been informed. Says Rebecca Naser of Hart Research, which conducted the study, “More than anything that’s happened is that their confidence as homeownership as a way to build wealth, that’s been chipped away.” However, the desire for affording a home continues to remain strong. Naser says even people who had lost homes to foreclosure would like to return to buying a home. ##

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