RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Black, Hispanic Neighborhoods Struggle to Regain Lost Ground

Home Latest News
January 11, 2017
Reading Time: 2 mins read
Black, Hispanic Neighborhoods Struggle to Regain Lost Ground

The two groups are in conflict. 3D illustration

Homeowners in minority communities are struggling to regain ground lost in the crash, considerably more so than those in white communities, according to a recently released analysis by Zillow. In the third quarter of 2016, communities where the majority of residents are black held a 20 percent negative equity rate, while communities where the majority of residents are Hispanic held a 12 percent negative equity rate—both above the national rate of 10.9 percent.

“Negative equity is not an equal opportunity offender, with certain markets still being more affected than others,” says Zillow Chief Economist Dr. Svenja Gudell. “Our previous research has shown that negative equity is more concentrated among less expensive homes, and now we know that it is also more prevalent in minority neighborhoods than in white communities, which are also trailing in the overall housing recovery. These gaps can and will have long-lasting implications for growth and equality.”

Homeowners in negative equity have limited options, often in limbo while their homes remain off-market—a factor exacerbating the nationwide inventory squeeze, according to Zillow’s analysis. Lower-valued homes generally comprise the starter home market, which, as Trulia recently reported, saw a 12.1 percent decline in inventory last year, resulting in price pressure for starter homebuyers.

Black and Hispanic homeowners are also at a disadvantage when it comes to being approved for a mortgage. Another recent analysis by Zillow shows 22.4 percent of black borrowers and 17.3 percent of Hispanic borrowers were denied conventional loans in 2015, of the 10.4 percent of all conventional loan applications denied that year. The disparity exists even though black and Hispanic populations hold homeownership in higher regard as it relates to the American Dream than white and Asian populations.

The homeownership rate among black households has dropped from its record-high 49.1 percent in 2004 to 41.3 percent today, according to a report by the Pew Research Center, while the rate among Hispanic households has dropped from its record-high 49.7 percent in 2007 to 47.0 percent.

The trend in negative equity is present in at least the top three metropolitan areas, according to Zillow’s most recent analysis. In New York, N.Y., the third quarter negative equity rate was 10.0 percent, while the negative equity rate in black communities was 13.9 percent and the negative equity rate in Hispanic communities was 20.6 percent; the negative equity rate for white communities was 8.8 percent. In Los Angeles-Long Beach-Anaheim, Calif., the third quarter negative equity rate was 5.7 percent, while the negative equity rate in Hispanic communities was 7.0 percent and the negative equity rate in white communities was 4.3 percent. In Chicago, Ill., the third quarter negative equity rate was 17.0 percent, while the negative equity rate in black communities was 28.2 percent and the negative equity rate in Hispanic communities was 22.8 percent; the negative equity rate in white communities was 13.8 percent.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

Tags: Black Homeownership RateHispanic Homeownership RateNegative EquityTruliaZillow
ShareTweetShare

Related Posts

The AI Advantage: Experts Share How AI Is Revolutionizing Real Estate—and Why the Potential for Agents Is Limitless
Best Practices

The AI Advantage: Experts Share How AI Is Revolutionizing Real Estate—and Why the Potential for Agents Is Limitless

July 2, 2025
The 3 ‘Hottest’ Markets in Each Region This Spring
Agents

The 3 ‘Hottest’ Markets in Each Region This Spring

July 2, 2025
5 Signs a Senior Homeowner May Be Ready to Downsize
Agents

5 Signs a Senior Homeowner May Be Ready to Downsize

July 2, 2025
MRED
Agents

Midwest Real Estate Data Welcomes Quad City Area REALTORS® as Newest Association Partner

July 2, 2025
Five Selling Missteps That Could Cost Homeowners Thousands
Industry News

Five Selling Missteps That Could Cost Homeowners Thousands

July 2, 2025
Realty Executives International Announces Unified Leadership in Arizona
Agents

Realty Executives International Announces Unified Leadership in Arizona

July 2, 2025
Please login to join discussion
Tip of the Day

The Secret to a Stellar Open House

Open houses are an art form. Learn what can turn an OK outing into a great one. Watch now.

Business Tip of the Day provided by

Recent Posts

  • The AI Advantage: Experts Share How AI Is Revolutionizing Real Estate—and Why the Potential for Agents Is Limitless
  • The 3 ‘Hottest’ Markets in Each Region This Spring
  • 5 Signs a Senior Homeowner May Be Ready to Downsize

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X