As indicated in the table above, no one demographic group can afford 100 percent of
the housing units sold in Lake County based on sale prices and the estimated median
household income. However, it is worth noting that, based on median income, Asian
and White households can still afford the majority of homes sold in Lake County, as 88
percent of total units sold are within the assumed mortgage range of both races. Based
on median income, Blacks or African-American and Hispanic households can only
afford 59 percent of the total home sales. When analyzing conventional sales alone, the
percentage of affordable sales for all demographics drops; 83 percent of sales are
affordable to White and Asian households, while only 44 percent of sales are affordable
to Black or African-American and Hispanic households (based on median income). In
removing the often lower-cost foreclosure sales from the analysis, it is clear that AfricanAmerican and Hispanic households have, on average, less buying power in the
ownership market. Further, as may be concluded by mortgage analysis in the following
section, minority households may have a more difficult time procuring average or lower
mortgage interest rates and terms.
In the current market, mortgage rates range, on average, from 4 percent to 4.875
percent. Also, depending on loan product availability, some banks are offering no- or
low-mortgage-insurance loans, which require financing at higher interest rates. Lending
regulations, including credit evaluation and increased down payments, have also
continued to become stricter in the current market.
Property Taxes
Lake County continues to yield some of the highest average property tax rates in the
region. The tax structure in the county, comprised of multiple taxing bodies for any given
taxing district, often produces higher taxes on residential property located in lower
opportunity areas versus higher opportunity areas. 16 These areas generally lack the
diversified base of commercial and industrial properties needed to provide local
economic opportunities. The