Industry News

Downturn widens homeownership divide

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By SERGIO MOSQUEDA While the overall homeownership rate climbed during the housing boom, and minority groups narrowed the homeownership gap with whites, the crash has sent the homeownership trend into reverse. Gains in homeownership gave under the weight of the subprime loan market meltdown. Fair-housing advocacy groups also blame reverse redlining, the insulation of minority communities and an insufficient financial education for tearing down the homeownership rate. Rise and fall in homeownership The Pew Hispanic Center reported this month that, from 1995 to their respective peaks, the homeownership rate among blacks grew from 41.9 percent to 49.4 percent in 2004; the rate for Hispanics rose from 42 percent to 49.8 percent in 2006; and the Asian homeownership rate surged from 49.1 percent to 60.8 percent in 2008. White homeownership increased from 68.7 percent in 1995 to 72.7 percent in 2005, the U.S. Census Bureau reported, and the Pew Hispanic center found that the white ...