Full Citation
Title: The Trajectory of Housing Credit in the United States and the Facade of a Democratization of Credit: Racial Inequalities Continued
Citation Type: Conference Paper
Publication Year: 2012
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Abstract: Post-1960s housing policies encouraged broad-based mortgage lending to disadvantaged classes. During the past decade, the United States experienced a particular boom in mortgage lending that economists referred to as a democratization of credit, where banks provided access to homeownership for formerly excluded, disadvantaged groups including racial and ethnic minorities. This study uses nationally representative Integrated Public Use Microdata to examine trends in homeownership by race in the United States from 2000-2010. Multivariate logistic regressions find that the well-documented negative minority association with homeownership decreased considerably for Hispanic households but was sustained for black households. Initial gains in homeownership experienced by black households in the earlier part of the decade were almost entirely lost by 2009. The analysis concludes that mortgage credit was not democratized, but developments in the mortgage market were felt differently across racial and ethnic boundaries. What occurred in the housing market between 2000 and 2010 can be more accurately described as a faade of a democratization of mortgage credit. In conclusion, the mortgage market remains highly inequitable; however Hispanic households are entering into homeownership at unprecedented levels while black households remain as disadvantaged as they were ten years ago.
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Authors: Kuebler, Meghan
Conference Name: Dublin Workshops: Financialization, Consumption, and Social Welfare Politics
Publisher Location: University College Dublin, Ireland
Data Collections: IPUMS USA
Topics: Housing and Segregation, Poverty and Welfare, Race and Ethnicity
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