Research Report Weathering the Recession: The Financial Crisis and Family Wealth Changes in Low-Income Neighborhoods
Leah Hendey, Signe-Mary McKernan, Beadsie Woo
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This report looks closely at what happened to assets, debts and home equity for families living in low-income neighborhoods during the Great Recession, using data from the longitudinal Making Connections Survey. We find that both average savings and debt amounts increased between 2005/06 and 2008/09, but asset and debt levels remained lower for vulnerable families, and low-income families disproportionally lost equity during the crisis. Yet even in 2008/09, home equity was substantial and an important component of wealth ($66,000, more than four times as much as families had in savings) for the nearly half of families who were homeowners.
Research Areas Economic mobility and inequality Wealth and financial well-being Families Social safety net
Tags Asset and debts Welfare and safety net programs Economic well-being Income and wealth distribution Inequality and mobility Opportunity and ownership Financial stability
Policy Centers Center on Labor, Human Services, and Population