The housing crisis stripped many families of their wealth, especially those in communities of color. This presentation will examine when and for whom homeownership is the right wealth building strategy

Andrew J. Greenlee

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Finding the “Fit” Between Housing Strategies and Housing ConsumersAndrew J. Greenlee, Ph.D.Assistant ProfessorDepartment of Urban and Regional PlanningUniversity of Illinois at Urbana‐Champaignagreen4@illinois.eduHistory Matters• Access to Capital• Wealth Accumulation Strategies• Uneven Geography of Wealth2Differential Impacts on Wealth Accumulation by Race• Median Assets for Families by Race, 2007Asset Whites Non‐WhitesBusiness Equity $100,000 $50,000Bonds $96,000 $23,000Retirement  Accounts$53,000 $25,000Certificates of  deposit$20,000 $10,000Stocks $19,000 $8,000Source: Pew Research Center 3Differential Impacts on Wealth Accumulation by Race• Minorities saw a drop in wealth accumulation between 2005  and 2009:• Home equity comprises a majority of net worth  compared to Whites, where home equity comprises  44%• Latinos and Asian Americans tend to live in areas that  experienced disproportionate effects of the crisisSource: Pew Research Center 4Differential Impacts on Wealth Accumulation by Race• Median Net Worth by Race, 2007‐2009 From 2007‐2009, the  average net worth of  Blacks fell by 49%, in  comparison to the net  worth of Whites, which  fell by 19%.Source: Pew Research Center 5Differential Impacts on Wealth Accumulation by RaceSource: Pew Research Center 6Differential Impacts on Wealth Accumulation by RaceSource: Pew Research Center 7Income Segregation IncreasingSource: Pew Research Center 8Responses to the Foreclosure Crisis: Government Responses• Micro‐Market Recovery Program, Chicago: • $15‐20 million for local areas with high rates of foreclosures• With nonprofits, MMRP creates incentives for developers to reoccupy  foreclosed and vacant properties• Homeowner Helpline, Illinois:• Housing counselors and foreclosure prevention assistance answer calls• Since 2008, has assisted 47,000 calls and generated $70 million in  savings9Responses to the Foreclosure Crisis: Government Responses• Hardest Hit Fund (HHF), U.S. Treasury:• Provides up to $25,000 in mortgage assistance to unemployed or  underemployed homeowners• Illinois started a Mortgage Resolution Fund, which uses $100 million to  purchase delinquent mortgages. Homeowners who successfully pay  their mortgage after have more affordable mortgage modifications• Illinois HHF has helped more than 2,200 homeowners10Responses to the Foreclosure Crisis: Bank Responses• Rescue Loan and Prevention Program (ShoreBank):• Provided new homeowners fixed‐rate loans• Switched adjustable‐rate mortgages to fixed‐rate loans for at‐risk  homeowners• From 2008‐2009, ShoreBank helped 167 homeowners, or about  $29 million in loans• Funded by MacArthur Foundation and Chicago Community Trust11Looking Ahead• Adapting Existing Strategies• Creating New Context‐Specific Response Frameworks• Adaptability• Scalability• Accountability12Finding the “Fit” Between Housing Strategies and Housing ConsumersAndrew J. Greenlee, Ph.D.Assistant ProfessorDepartment of Urban and Regional PlanningUniversity of Illinois at Urbana‐Champaignagreen4@illinois.edu

Finding the Fit Between Housing Strategies and Housing Consumers

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Finding the Fit Between Housing Strategies and Housing Consumers

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