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Home Ownership and Wealth Building

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blk_reign:
Faith started this discussion before.. but i think that a thread needs to be dedicated to it


New Report Details Inequality For Black Americans
By ERIN TEXEIRA
AP National Writer

NEW YORK (AP) _ Though income and education gaps between black and white Americans have narrowed significantly, black households still have barely one-tenth the net worth of white households, according to a new National Urban League report.

Middle class blacks' tenuous hold on prosperity reflects racial discrimination in housing and other wealth-building arenas _ both historically and now _ and suggests that today's U.S. civil rights battles are largely economic, said Marc H. Morial, Urban League president.

``Since the 1960s, one of the success stories is the growth of the African-American middle class _ those who are college-educated, participating throughout the American economy and growing in stature and influence,'' Morial said. ``But what we face is that these successes of 40 years are being eroded. The danger is the great backslide that can occur.''

``The State of Black America 2005,'' scheduled to be released Wednesday at a Washington news conference, comes as the Urban League also calls on Congress to assemble a bipartisan commission on economic equality and advancement.

Analyzing a broad range of government statistics, the report compares life quality for blacks and whites in dozens of categories related to economics, health, education, civic participation and social justice. Taking the whole picture into account, the report produced a measure of blacks overall well-being, which it described as barely three-fourths that of whites _ a ratio that was unchanged from last year to this year.

``Last year, I said I looked forward to seeing these numbers improve. Our update, however, does not represent an improvement,'' said James Diffley of Global Insight, the Philadelphia-based economic research firm that compiled the data. ``There is a gap between black America and white America.''

Among the report's findings:

_Blacks have more than double the unemployment rate of whites.

_Less than half of blacks own homes compared to more than three-fourths of whites.

_Black youth are more likely to have poorly trained teachers, live in poverty and not have health insurance than whites.

Still, the report also makes clear that black America has made significant gains in some areas.

Since 1960, when black men earned only 50 cents for every dollar earned by white men, income gaps have narrowed as the black middle class has grown and become more educated. In 2000, black men earned 64 cents on the dollar, according to Thomas M. Shapiro, a professor of law and social policy at Brandeis University who wrote an essay, ``The Racial Wealth Gap,'' in the Urban League's report.

But Shapiro said that net worth shows how families accumulate gains over generations.

``Wealth really rounds the picture out and gives us a deeper perspective,'' said Shapiro, whose essay is based on his book, ``The Hidden Cost of Being African American,'' published last year.

The median net worth of black versus white households has remained virtually unchanged for more than a decade: In 2000, black households on average were worth $6,166 compared to $67,000 for whites, census data show. The ratio was virtually identical in the early 1990s.

Since most Americans build wealth through home ownership, inequities in the housing market explain much of the gap, Shapiro said.

Today, studies show, among blacks and whites with comparable credit histories, blacks are 60 percent more likely to be denied home loans as whites, he said.

This wealth gap, Shapiro writes, ``is reversing gains earned in schools and on jobs and making inequality worse.''

blk_reign:

Less than half of blacks own homes compared to more than three-fourths of whites.


With that said.. I’m here to do whatever I can to help you guys in your quest for wealth-building and home ownership.. if you are considering purchasing a home.. I can help you get an excellent deal anywhere in this country… a very dear friend of mine is an African American loan officer  and she works with all types of credit.. finds excellent deals in spite of student loans.. so if you’re interested.. feel free to PM me for further details…

Onward and Upward in the struggle!

Edit: As a barred attorney I can also help with some of the seller consession (ie builder/seller contracts)

MsJay9:
 :) Good Job!  You know we needed this thread....(and u know I did)  :)

jsonlaw:
Amen! 

Actually, I believe that black home ownership is at 52% now.  Owning a home is pertinent to building wealth, but the disparity in home values are crazy.  What other ways, besides spending 92% of our incomes on materialistic stuff, can black people build wealth?

angmill08:
I just read a column recently in either the WSJ or the NYT about wealth building and privatization of social security which claimed that private accounts would help black families build wealth because the $$ could be passed on to heirs. Apparently now, elderly people collect Social Security until they die (or until their spouse dies) but if both die relatively young, they could have paid more into the system than they take out. Since blacks on average have shorter life spans than whites, I believe the argument was that, on average, blacks are not getting as much benefit from social security as whites. I thought this was an unusual argument, and I don't really know much about privatization plans. Of course, now that I go back and try to search for the article (I think it was an op-ed piece) I can't find it... sorry to be so vague here. But I wonder if anyone else knows more or has strong opinions about the capacity for social security changes to help/hinder wealth building?

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