Neighborhood Inequalities and the Long–Term Impact of Foreclosures: Evidence from the Los Angeles–Inland Empire Region

Molina, Emily Tumpson

doi:10.1111/cico.12192

Cited by 12 publications

(12 citation statements)

References 55 publications

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“…Sales of foreclosed properties may have become even more deconcentrated than the foreclosures themselves because the foreclosures were now occurring in areas of more interest to both homeowners and investors. This notion is consistent with Molina's (2016) finding that foreclosed properties located in more diverse (i.e., less predominantly African American) neighborhoods were more likely to sell (to either investors or owner-occupiers) rather than remain vacant.…”

Section: Foreclosures Neighborhoods and Tenuresupporting

confidence: 87%

“…Other research has examined the effect of foreclosures on other neighborhood conditions, including crime (Cui & Walsh, 2015;Williams, Galster, & Verma, 2014). A somewhat smaller literature has examined the trajectory of foreclosed properties over time, seeking to understand the chain of title of the properties and their eventual tenures and uses (Ellen, Madar, & Weselcouch, 2015;Immergluck & Law, 2014a;Molina, 2016;and Pfieffer & Lucio, 2015).…”

Section: Foreclosures Neighborhoods and Tenurementioning

confidence: 99%

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Renting the Dream: The Rise of Single-Family Rentership in the Sunbelt Metropolis

Immergluck

2018

Housing Policy Debate

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In the aftermath of the foreclosure crisis, there has been a marked shift toward renting in the United States, with a large increase in households renting single-family homes. In the 50 largest metropolitan areas, the number of detached, single-family rental homes (SFRs) increased from 3.8 million to 5.8 million from 2006 to 2015. Single-family rentership rates increased in all 50 large metro areas, with the percentage of single-family units that are rented increasing from 11.3% to 16%. Notably, the nine metropolitan areas with the largest increases were all located in the Sunbelt. Given expected neighborhood sorting, it is important to consider neighborhood increases in SFRs. In one large Sunbelt metro area, Atlanta, increases in SFRs from 2010 to 2015 were particularly large in older, inner-county diverse suburbs. Regression results show that, controlling for other neighborhood characteristics, neighborhoods with larger Asian, Latino, and black populations saw larger increases in SFRs. The effects were particularly high in neighborhoods with larger Latino and, especially, Asian populations. Another key finding is that, in neighborhoods with lower property values, more foreclosures during the crisis were associated with sizeable increases in SFRs. However, more foreclosures in neighborhoods with high property values were not associated with increases in SFRs. This is possibly due to the exclusionary nature of high property-value suburbs and the strong demand in such neighborhoods for owner-occupied housing. Implications for policy and research are considered. Since the middle of the 20th century, the United States has been a majority homeownership nation. With the expansion of the middle class after the Great Depression and the institutionalization of more affordable and accessible mortgage markets, the U.S. homeownership rate climbed rapidly from below 45% in 1940 to over 60% by 1960, and then more gradually until 1980 (Fetter, 2013; Spader, McCue, & Herbert, 2016). Since 1980 there have been ebbs and flows in the homeownership rate, punctuated with a spike in the rate from the middle 1990s to 2004, when the rate reached a peak of 69%. Since 2004, in the wake of the mortgage crisis, the rate has dropped significantly, settling at about 63%-64% since 2015. Single-family homeownership, in particular, is not just a phenomenon of household aspiration. Rather, it was the foundation of suburbanization and suburban form, with both construction financing and homeownership finance led by the Federal Housing Administration and Veterans Administration loan programs (Jackson, 1987). Arguably, the exclusion of renters, especially those of modest means, was and still is a hallmark of modern American suburbs. Localities employ fiscal and exclusionary zoning practices to build and maintain neighborhoods dominated by homeownership, especially in metropolitan areas where land is relatively more affordable (Levine, 2010; Pendall, 2000). The suburban ideal is marked by homeownership, and the physical design and organization of sub...

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Section: Foreclosures Neighborhoods and Tenuresupporting

confidence: 87%

Section: Foreclosures Neighborhoods and Tenurementioning

confidence: 99%

Renting the Dream: The Rise of Single-Family Rentership in the Sunbelt Metropolis

Immergluck

2018

Housing Policy Debate

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“…These findings also challenge accounts of the “exurban slum” and the so‐called death of the exurbs (Frey, ; Goodman, ; Leinberger, , 2011; Lucy, ). Whereas foreclosure rates were highest in the Los Angeles exurbs, there is some evidence that foreclosures there were more likely to sell overall (Molina, ). This article provides evidence that this “exurban recovery” was fueled especially by owner‐occupants' purchases.…”

Section: Discussionmentioning

confidence: 99%

“…Predominantly black and Latino neighborhoods experienced the highest foreclosure rates (Molina, ). Predominantly black neighborhoods experienced the highest REO vacancy rates, the most potentially harmful outcome of all possibilities (Molina, ). And predominantly nonwhite neighborhoods (the effects are similar for the proportion of black, Latino, and Asian residents) experienced more corporate investment and more REO flips—the most risky and potentially destabilizing of outcomes.…”

Section: Discussionmentioning

confidence: 99%

Foreclosures, Investors, and Uneven Development during the Great Recession in the Los Angeles Metropolitan Area

Molina

2016

Journal of Urban Affairs

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In the wake of the U.S. housing crisis, what has happened to the substantial stock of foreclosed or real estate–owned (REO) properties is only beginning to be understood. The eventual outcomes of these properties are central to our understanding of the varied impacts of the foreclosure crisis, including its contribution to enduring and emerging patterns of uneven development. This article considers the scope and potential impacts of investor purchases of foreclosures in diverse neighborhoods in the Los Angeles region. Overall, findings suggest that very different patterns of investment emerged in the urban core, the postwar inner‐ring suburbs, and the exurbs. In addition, investors’ purchases and strategies varied significantly according to neighborhood racial composition and, to a much lesser extent, neighborhood socioeconomic characteristics. These patterns highlight two major issues: a sharp divide in investment between the relatively similar urban/inner‐ring suburban core and the newer exurbs; and the enduring relationship between race and capital investment in neighborhoods in the wake of the housing crisis.

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“…() note that low‐poverty Black neighborhoods only experienced moderate recovery, if any at all, while White and middle‐ or upper‐income neighborhoods recovered in home value, and home prices were less volatile after the crisis. In California, foreclosed vacant properties in Black and Latino neighborhoods were more likely to remain vacant for more months than properties in Asian neighborhoods in Los Angeles County and the Inland Empire (Molina ; see also Li and Walter []).…”

Section: What We Know About How Place Affects Foreclosure Riskmentioning

confidence: 99%

Impacts of Multiscale Racial Concentration on Neighborhood Foreclosure Risk in Immigrant Gateway Metropolitan Areas

Lee

Greenlee

2020

City & Community

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Scholars define emerging gateway metropolitan areas in the United States as regions in which immigrant communities settled after the 1990s. Historically, immigrant and minority neighborhoods are characterized by exclusion from conventional sources of financial capital––factors which compound risks associated with residential instability and foreclosure. Yet, these new gateways may offer protection from foreclosure due to the relative affordability of housing and concentration of racial and ethnic and class advantages. We examine whether foreclosure risk is mediated through spatial processes, race, nativity, and class. We find that race and nativity play a major role in mediating risk across immigrant gateways. Neighborhoods with higher levels of Asian concentration presented lower risk, regardless of nativity and income. In contrast, Latino foreclosure risk varied by nativity, income, and gateway. Emerging gateways are also associated with higher foreclosure risk. Our findings inform resurgent ethnicity theory and how middle‐class immigrant neighborhoods offer improved socioeconomic outcomes without relying on White areas as a standard for immigrant integration.

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Neighborhood Inequalities and the Long–Term Impact of Foreclosures: Evidence from the Los Angeles–Inland Empire Region

Cited by 12 publications

References 55 publications

Renting the Dream: The Rise of Single-Family Rentership in the Sunbelt Metropolis

Renting the Dream: The Rise of Single-Family Rentership in the Sunbelt Metropolis

Foreclosures, Investors, and Uneven Development during the Great Recession in the Los Angeles Metropolitan Area

Impacts of Multiscale Racial Concentration on Neighborhood Foreclosure Risk in Immigrant Gateway Metropolitan Areas

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