Chart G
Racial, Ethnic Wealth Gaps Have Grown Since Great Recession
Median Net Worth of Households, in 2013 Dollars
White Net Worth
13x Greater
1,000,000
1,000,000
$192,000
White
100,000
•
8x
10,000
White Net Worth
10x Greater
•
• • •
•• • • • •
17x
7x 7x 6x 6x 7x 10x
Black
$192,000
$141,900
White
100,000
11x
8x 13x
• • • • • • •
$19,200
•
•
$11,000
•
10,000
14x
10x 6x 10x
11x
9x 8x
Great Recession
1,000
‘83 ‘86 ‘89 ‘92 ‘95 ‘98 ‘01 ‘04 ‘07 ‘10 ‘13
Source: Pew Research Center, “Wealth inequality has widened along racial, ethnic lines since end of Great Recession”
(December 12, 2014). Note: Blacks and whites include only non-Hispanics. Hispanics are of any race.
renters. Cash savings accounted for less
than $1,000 of this new worth, “leaving all of
these renters without much cushion against
emergencies, let alone funds for a down
payment on a home.”47
In the coming years, the homeownership
prospects for many minority families, who
will constitute an increasingly larger share of
the U.S. population, will be severely limited.
While desiring homeownership, many will
simply not have the resources in the form of
income and wealth to meet mortgage down
payment and other requirements. As a result,
renting will be their only housing option.
Higher Annual Immigration Levels
The foreign-born population in the United
States has traditionally been a strong source
of housing demand. From 2001 to 2007,
foreign-born households accounted for
30 percent of overall household growth.48
However, immigration to the U.S. slowed
considerably as a result of the Great Reces-
The Silent Housing Crisis: A Snapshot of Current and Future Conditions
9x 10x
• • • • • • •
•
• •
$23,600
$13,700
Hispanic
Great Recession
1,000
‘83 ‘86 ‘89 ‘92 ‘95 ‘98 ‘01 ‘04 ‘07 ‘10 ‘13
$141,900
• • •
•• • • • •
sion and household formation among the
foreign-born fell as the economy faltered
and employment opportunities dried up. In
fact, in 2009 and 2010, the number of foreign-born households in the U.S. registered
a net decline.49 More recently, however,
immigration to the U.S. has picked up and
the foreign-born share of overall household
growth has expanded to nearly 40 percent.50
If net annual immigration returns to the
levels recorded prior to the Great Recession – ranging from 900,000 to 1.2 million
between 2000 and 2006 – this trend will
have a significant impact on the housing
market and will certainly spur increased
demand for rental housing. Soon after their
arrival to the United States, foreign-born
households often seek out multifamily rental
housing in high-density areas near jobs and
other opportunities.51 Many are attracted to
“gateway cities” such as Houston, Miami,
Los Angeles and New York where they can
live close to others who have also settled
there from their home countries.52
17