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Wednesday, May 06, 2015

Foreclosures Fueled Racial Segregation

Via EurekAlert!:

Study finds foreclosures fueled racial segregation in US: Some 9 million American families lost their homes to foreclosure during the late 2000s housing bust, driving many to economic ruin and in search of new residences. Hardest hit were black, Latino, and racially integrated neighborhoods, according to a new Cornell University analysis of the crisis.
Led by demographer Matthew Hall, researchers estimate racial segregation grew between Latinos and whites by nearly 50 percent and between blacks and whites by about 20 percent as whites abandoned and minorities moved into areas most heavily distressed by foreclosures.
Forthcoming in the June print issue of the American Sociological Review and recently published online, the paper, "Neighborhood Foreclosures, Racial/Ethnic Transitions, and Residential Segregation," noted that the crisis spurred one of the largest migrations in U.S. history, changes that could alter the complexion of American cities for a generation or more. ...
Examining virtually all urban residential foreclosures from 2005 to 2009, Hall and co-authors find that mostly black and mostly Latino neighborhoods lost homes at rates approximately three times higher than white areas, with ethnically mixed communities also deeply affected. They estimate that the typical neighborhood experienced 4.5 foreclosures per 100 homes during the crisis, but the figure rises to 8.1 and 6.2 homes in predominately black and Latino areas, respectively, while white neighborhoods lost only 2.3 homes on average. ...
"Not only were white households less likely to be foreclosed on, but they also were among the first to leave neighborhoods where foreclosures were high, particularly those with racially diverse residents," said Hall. ...

    Posted by on Wednesday, May 6, 2015 at 09:21 AM in Economics, Housing | Permalink  Comments (2)


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