Research Report How Economic Crises and Sudden Disasters Increase Racial Disparities in Homeownership
Michael Neal, Alanna McCargo
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The report provides an outline of the considerations and implications for racial equity, homeownership, and wealth building presented by the current pandemic, which is magnifying racial and ethnic disparities within the US health, housing systems and labor market. We look at past economic cycles, including those that encompassed the Great Recession in 2007 and Hurricane Katrina in 2005, for insights on how these events exacerbate disparities in risks and recovery for people of color. We show evidence suggesting that structural barriers contribute to persistent racial and ethnic disparities in areas such as homeownership and unemployment. In addition, economic downturns induced by recessions or natural disasters can enlarge these gaps. This is the first in a series of work that will elevate the role of racial equity when examining economic cycles; promote equity-conscious federal, state, and city policies; bring forth relevant data and analysis; and create a useful set of tools to accelerate equitable and inclusive recovery.

Research Areas Economic mobility and inequality Wealth and financial well-being Race and equity Housing finance Housing
Tags Asset and debts Racial and ethnic disparities Tracking the economy Housing and the economy Single-family finance Homeownership Financial products and services Housing affordability Wealth inequality Volatility Inequality and mobility Finance Racial barriers to housing Racial homeownership gap Racial inequities in economic mobility Financial stability
Policy Centers Housing Finance Policy Center