SEATTLE, April 25, 2019 /PRNewswire/ -- Millions of
homeowners across the country lost their homes in the foreclosure
crisis, missing out on the opportunity to regain and grow their net
wealth as the housing market recovered. But in black and Hispanic
communitiesi, the foreclosure crisis hit especially
hard, and foreclosed homes in those areas have yet to fully
recover, according to a new Zillow® analysis.
When the housing market crashed, many homes lost a significant
share of their value, especially among homes that were ultimately
foreclosed. In Hispanic and black communities, foreclosed home
values fell by more than 50 percent.
As the market recovered and home values rebounded, foreclosed
homes saw strong appreciation –equity growth that the former owners
couldn't access. Foreclosed homes in black and Hispanic communities
have more than doubled in value since reaching their lowest point,
though they remain 4.7 percent and 9.5 percent below their
peaks.
Not only did the foreclosure crisis have a sharper impact on
people's ability to gain wealth in black and Hispanic communities,
it also had a broader reach into those areas. Nationally, 19.4
percent of all foreclosures between 2007 and 2015 were in Hispanic
communities – but only 9.6 percent of homes are in those same
areas. Similarly, 12.7 percent of foreclosures occurred in black
communities, while 7.7 percent of all homes are in black
communities.
In Atlanta, 30.5 percent of all
homes are in black communities, but more than half of all
foreclosed homes are in those communities. Just 44.2 percent of
foreclosed Atlanta homes are in
white communities, compared with the overall 65.1 percent of homes
in white communities.
Losing a home to foreclosure is especially impactful for
Hispanic and black homeowners, who historically have held the
majority of their net worth in their homes. Near the height of the
housing bubble in 2007, Hispanic and black homeowners had 73.1
percent and 61.8 percent of their net worth tied up in their homes.
For white homeowners, that number was only 46.5 percent.
"The housing bust and foreclosure crisis that followed resulted
in a disproportionate number of people of color losing not only the
roof over their heads, but the wealth—and the opportunity to
potentially build more—that came with it," said Zillow Senior
Economist Sarah Mikhitarian. "Black
and Hispanic homeowners were more exposed to the foreclosure crisis
because homes accounted for such a large share of their wealth.
With fewer assets to draw on, it was harder for them to hold onto
their homes if they fell underwater on their mortgages, owing more
than their home was worth. For people who ultimately succumbed to
foreclosure, they missed out on the opportunity to see their home's
equity—and therefore their wealth—climb back up."
Metropolitan
Area
|
Share of
Foreclosed
Homes in Black
Communities
|
Share of All
Homes in Black
Communities
|
Share of
Foreclosed
Homes in
Hispanic
Communities
|
Share of All
Homes
in Hispanic
Communities
|
United
States
|
12.7%
|
7.7%
|
19.4%
|
9.6%
|
New York,
NY
|
17.3%
|
8.8%
|
21.7%
|
9.4%
|
Los Angeles-Long
Beach-Anaheim, CA
|
3.5%
|
2.4%
|
59.6%
|
38.4%
|
Chicago,
IL
|
15.5%
|
11.6%
|
15.5%
|
9.8%
|
Dallas-Fort Worth,
TX
|
19.4%
|
10.2%
|
25.8%
|
20.9%
|
Philadelphia,
PA
|
36.2%
|
17.5%
|
6.9%
|
4.0%
|
Houston,
TX
|
18.6%
|
10.6%
|
39.8%
|
30.3%
|
Washington,
DC
|
22.9%
|
21.2%
|
13.7%
|
6.8%
|
Miami-Fort
Lauderdale, FL
|
20.8%
|
14.0%
|
46.0%
|
38.8%
|
Atlanta,
GA
|
50.4%
|
30.5%
|
5.0%
|
3.7%
|
Boston, MA
|
9.0%
|
2.9%
|
8.6%
|
2.5%
|
San Francisco,
CA
|
4.6%
|
2.0%
|
38.1%
|
16.5%
|
Detroit,
MI
|
35.0%
|
24.6%
|
0.9%
|
1.1%
|
Riverside,
CA
|
0.0%
|
0.0%
|
61.8%
|
51.1%
|
Phoenix,
AZ
|
0.0%
|
0.0%
|
29.7%
|
19.2%
|
Seattle,
WA
|
0.6%
|
0.5%
|
1.5%
|
0.8%
|
Minneapolis-St Paul,
MN
|
6.8%
|
1.9%
|
1.3%
|
0.5%
|
San Diego,
CA
|
0.0%
|
0.0%
|
36.3%
|
22.9%
|
St. Louis,
MO
|
37.9%
|
17.9%
|
0.1%
|
0.1%
|
Tampa, FL
|
8.0%
|
4.8%
|
8.7%
|
6.6%
|
Baltimore,
MD
|
38.2%
|
23.4%
|
0.6%
|
0.5%
|
Denver, CO
|
2.1%
|
1.0%
|
29.3%
|
13.5%
|
Pittsburgh,
PA
|
9.0%
|
5.4%
|
0.0%
|
0.0%
|
Portland,
OR
|
0.0%
|
0.0%
|
0.7%
|
0.5%
|
Charlotte,
NC
|
32.2%
|
17.1%
|
1.3%
|
1.1%
|
Sacramento,
CA
|
0.0%
|
0.0%
|
19.4%
|
11.0%
|
San Antonio,
TX
|
1.3%
|
0.6%
|
65.8%
|
55.3%
|
Orlando,
FL
|
10.3%
|
7.9%
|
31.7%
|
22.0%
|
Cincinnati,
OH
|
16.4%
|
7.7%
|
0.0%
|
0.0%
|
Cleveland,
OH
|
40.1%
|
16.7%
|
2.8%
|
1.5%
|
Kansas City,
MO
|
19.5%
|
10.4%
|
5.6%
|
3.9%
|
Las Vegas,
NV
|
0.5%
|
0.5%
|
29.2%
|
24.3%
|
Columbus,
OH
|
22.4%
|
10.3%
|
0.0%
|
0.0%
|
Indianapolis,
IN
|
17.1%
|
11.8%
|
1.0%
|
0.5%
|
San Jose,
CA
|
0.0%
|
0.0%
|
48.4%
|
20.4%
|
Austin, TX
|
1.0%
|
0.5%
|
39.2%
|
23.5%
|
Nashville,
TN
|
16.9%
|
6.1%
|
1.0%
|
0.3%
|
Raleigh,
NC
|
19.4%
|
9.0%
|
0.7%
|
0.5%
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with great real estate professionals. In addition,
Zillow operates an industry-leading economics and analytics bureau
led by Zillow Group's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists, data analysts, applied scientists and engineers produce
extensive housing data and research covering more than 450 markets
at Zillow Real Estate Research. Zillow also sponsors the quarterly
Zillow Home Price Expectations Survey, which asks more than 100
leading economists, real estate experts and investment and market
strategists to predict the path of the Zillow Home Value Index over
the next five years. Launched in 2006, Zillow is owned and operated
by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in
Seattle.
Zillow is a registered trademark of Zillow, Inc.
i Communities were identified at the census
tract-level in which a given race represented the plurality in that
given area.
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SOURCE Zillow