November 4 2010 (Jeff Alan)
According to the Census Bureau the overall rate of home ownership in the United States remained the same in the third quarter of this year compared to the previous quarter. Overall, home ownership dropped just 0.7 percent compared to the same period in 2009.
However, the Bureau is reporting that there was a pronounced slide in minority home ownership.
The overall home ownership rate came in at 66.9 percent for the third quarter; but, for African Americans, it dropped to 45 percent from 46.4 percent during the same period of 2009.
Among Hispanics, meanwhile, the rate fell to 47 percent from 48.7 percent a year earlier. By comparison, the share of white Americans who owned their homes slid just 0.3 percent to 74.7 percent.
Home ownership peaked in 2004 and 2005 with Hispanic ownership peaking at 55.2 percent and African-American ownership peaking at 49.4 percent. Home ownership among whites peaked at 76.1 percent during that same period.
A Pew Research Center study found during the boom time, roughly 1995 to 2005, minority groups latched onto the American dream at a much faster pace than whites did. Homeownership among whites increased 5.6 percentage points, while rate increases among minority groups ranged from 6.8 percentage points to 11.7 percentage points
The statistics showed that the gap in homeownership between whites and minorities had narrowed but still remained significant, according to the study’s authors, Rakesh Kochhar, Ana Gonzalez-Barrera and Daniel Dockterman.
They also found that blacks and Hispanics were more likely than whites to take out subprime loans, which are designed for borrowers with low credit scores. Just 10.5 percent of loans to whites in 2007 fit that category, compared with the 27.6 percent of loans taken out by Hispanics and the 33.5 percent for blacks.
All of which may explain why minority groups are experiencing a faster drop in home ownership now.
Tags: census bureau, minority home ownership, sub-prime loans, low credit scores, loans, minority groups