Researchers at Rice University in Houston and Cornell University in Ithaca, New York, find in a new study that although racial discrimination has been drastically reduced in the marketing of real estate, growing racial economic inequality is making it increasingly difficult for many African Americans to afford their own home.
The study examined home ownership patterns over the past four decades. Researchers found that since the 1990s, African American homebuyers were 45 percent more likely than Whites to transition out of homeownership. One of the reasons that Blacks have had trouble holding on to their homes is that lenders targeted minorities with subprime loans for mortgages and home refinancings. Subsequently, many Black families were unable to make payments on these loans and had to sell their properties or lost their homes.
The study, “Emerging Forms of Racial Inequality in Homeownership Exit, 1968-2009,” appears in the August issue of the journal Social Problems. It may be accessed here.
Below is a video showing Gregory Sharp, a postdoctoral fellow in sociology and lead author of the study, discussing the research.