Over the past three decades, black homeowners have been twice as likely to lose their property and return to rent.
This is according to a recent study that found that 1 in 10 black homeowners returned for rent between 1984 and 2017, compared to 1 in 20 white homeowners, USA Today reports.
Dartmouth College researcher Gregory Sharp, who co-authored the report, said the difference could be in the availability of extended family wealth to help pay off the mortgage.
“They may not have access to wealth in the family,” Sharp said. “So because African-American homeowners are already in a more vulnerable state on average, it’s logical that these types of disasters like Covid are worse affected.”
The report found that the average net worth of the extended family of the Black homeowner was around $ 133,000. For the large family of white house owners, it was about $ 400,000.
The report could provide more information in terms of almost 3 million American homeowners who had mortgages to repay at the end of October. This number has been declining recently, but there are fears that a wave of executions could come once these aid programs expire.
Property ownership itself is a huge part of building family wealth, and according to the Brookings Institution, is one of the reasons why white families had a median net worth of $ 171,000 in 2016, about 10 times more than black families.
Racist policies adopted generations ago, as well as new lines, have an impact on black home owners today. Since 1980, homeowners in redeveloped neighborhoods https://therealdeal.com/2020/06/12/homeowners-gained-far-less-equity-in-formerly-redlined-areas-study/ – areas with mostly blacks, where creditors refused to provide mortgages – they built only half of the homeowners’ equity outside the lending area. [USA Today] – Dennis Lynch