Housing Tenure and Residential Segregation in Metropolitan America

Friedman, Samantha; Tsao, Hui-shien; Cheng, Chen

doi:10.1007/s13524-012-0184-y

Cited by 22 publications

(15 citation statements)

References 29 publications

(54 reference statements)

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“…Although 21% of white borrowers appeared to live in black neighborhoods, close inspection of these cases revealed many to be investors who likely lived elsewhere (see Gilderbloom et al 2012). While rising gentrification partly fueled by the subprime mortgage boom may have integrated black and white households in resurgent cities such as Washington, DC, black-white segregation may have been exacerbated in cities such as Baltimore (Bond and Williams 2007; Fischer 2013; Friedman et al 2012; Friedman, Tsao, and Chen 2013; Hyra and Rugh forthcoming; Lichtenstein and Weber 2014). …”

Section: Methodsmentioning

confidence: 99%

Race, Space, and Cumulative Disadvantage: A Case Study of the Subprime Lending Collapse

2015

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In this article, we describe how residential segregation and individual racial disparities generate racialized patterns of subprime lending and lead to financial loss among black borrowers in segregated cities. We conceptualize race as a cumulative disadvantage because of its direct and indirect effects on socioeconomic status at the individual and neighborhood levels, with consequences that reverberate across a borrower's life and between generations. Using Baltimore, Maryland as a case study setting, we combine data from reports filed under the Home Mortgage Disclosure Act with additional loan-level data from mortgage-backed securities. We find that race and neighborhood racial segregation are critical factors explaining black disadvantage across successive stages in the process of lending and foreclosure, controlling for differences in borrower credit scores, income, occupancy status, and loan-to-value ratios. We analyze the cumulative cost of predatory lending to black borrowers in terms of reduced disposable income and lost wealth. We find the cost to be substantial. Black borrowers paid an estimated additional 5 to 11 percent in monthly payments and those that completed foreclosure in the sample lost an excess of $2 million in home equity. These costs were magnified in mostly black neighborhoods and in turn heavily concentrated in communities of color. By elucidating the mechanisms that link black segregation to discrimination we demonstrate how processes of cumulative disadvantage continue to undermine black socioeconomic status in the United States today.

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Section: Methodsmentioning

confidence: 99%

Race, Space, and Cumulative Disadvantage: A Case Study of the Subprime Lending Collapse

2015

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“…Segregation undermines predominantly non-White neighborhoods’ economic and social integration, opportunities for geographic and socioeconomic mobility, and resources for strong community institutions and services (Massey and Denton 1993). Additionally, Black and Latino homeowners are more segregated from Whites than Black renters (Alba et al 2000; Friedman, Tsao, and Chen 2013). As a result, non-Whites are limited in their ability to purchase homes in more advantaged areas than they could live in as renters.…”

Section: Racial/ethnic Stratification In Homeownership and Healthmentioning

confidence: 99%

Racial and ethnic stratification in the relationship between homeownership and self-rated health

Finnigan

2014

Social Science & Medicine

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Social scientists have long demonstrated that socioeconomic resources benefit health. More recently, scholars have begun to examine the potential stratification in the health returns different groups receive for a given resource. Motivated by fundamental cause theory, this paper examines homeownership as a salient health resource with potentially stratified benefits. Homeowners have significantly greater housing quality, wealth, neighborhood quality and integration, and physical and mental health than renters. However, there are compelling theoretical reasons to expect the health advantage of homeownership to be unequally distributed across racial and ethnic groups. Analyses of the 2012 March Current Population Survey initially suggest all homeowners experience a significant health advantage. Further examination finds robust evidence for a homeowner health advantage among Whites, on par with the difference between the married and divorced. The advantage among minority households is considerably smaller, and not significant among Latinos or Asians. Conditioning on a broad array of observable characteristics, White homeowners emerge as exceptionally healthy compared to White renters and all minority groups. This leads to the unexpected finding that racial/ethnic differences in health are concentrated among homeowners. The findings demonstrate the interactive nature of racial/ethnic stratification in health through both access to and returns from socioeconomic resources.

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“…This result is consistent with segregation research that finds little evidence that class attenuates residential segregation. Black-white segregation is generally independent of income (Charles 2003) and homeowning blacks experience higher levels of segregation than their renting counterparts (Friedman et al 2013). Furthermore, using a place-based approach, Lichter and colleagues (2015b) find that black-white income inequality is immaterial to metropolitan segregation.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

“…An abundance of rental units may facilitate racial integration by promoting integration among people of different economic strata. In fact, within the neighborhoods literature, stably diverse census tracts tend to have lower homeownership rates than homogenous neighborhoods (Ellen, Horn, and O'Regan 2012) and black renters compared to homeowners show significantly lower segregation from whites (Friedman, Tsao, and Chen 2013).…”

Section: The Local Features Of Residential Integration Across Spatialmentioning

confidence: 99%

The New Suburb: Multiethnic Racial Residential Integration in the United States

Rastogi¹

2019

Preprint

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This article examines the relatively widespread trend toward racial residential integration within suburbs in the 21st century across metropolitan areas in the United States. I investigate the racial and ethnic compositions of stably integrated communities as well as the characteristics that distinguish these places. Using the information theory index (H) among stably diverse places, I identify cities and suburbs that were racially integrated between 2000 and 2010. Integrated places cluster in highly diverse, coastal metropolitan areas and almost entirely within suburbs. Moreover, integration is firmly patterned along racial lines. Reflecting the antiblack nature of segregation in the US, the rate of black-white integration remains remarkably low (10.5%), but in multiethnic communities with Asians and Latinxs, the probability of black-white integration nearly quadruples (40.1%). Several critical features of place are positively associated with integration: military and public sector employment as well as public university enrollment; new housing stock; and metropolitan political fragmentation. This study shows that suburbs are at the leading edge of American diversification and integration and illuminates the existence of communities where American society transgresses persistent forms of racial discrimination.

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Housing Tenure and Residential Segregation in Metropolitan America

Cited by 22 publications

References 29 publications

Race, Space, and Cumulative Disadvantage: A Case Study of the Subprime Lending Collapse

Race, Space, and Cumulative Disadvantage: A Case Study of the Subprime Lending Collapse

Racial and ethnic stratification in the relationship between homeownership and self-rated health

The New Suburb: Multiethnic Racial Residential Integration in the United States

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