How home ownership keeps blacks poorer than whites? (Atlanta, Washington: apartment, foreclosure)

[equinox63]

How Home Ownership Keeps Blacks Poorer Than Whites - Forbes

Your thoughts in relation to Metro Atlanta?

[Tarzanman]

Merely a symptom of a larger issue

[Big L]

In relation to Atlanta, people of various races have had a tendency to get in over their heads. The subprime loan issue has been beat to death on here, so I won't even mention that. With that being said, a lot of people that are "house poor" were actually financially qualified on paper (credit, finances, etc.). They just didn't realize that they truly couldn't afford the mortgage that on the surface didn't seem to be much higher than their rent or didn't sound like a lot of money in the beginning.

I tell people all the time that they have to be prepared both financially and mentally to own and maintain a house. Do you have enough money saved up to replace a broken water heater or fix a broken AC unit? Do you have the gumption to go out and mow the yard or pay for a decent lawn service? How much do you typically have left over after you pay for bills in your current apartment? Are you prepared to pay HOA dues and possible fines? Naturally, the list can go on and on.

The consumer is ulitimately responsible for their actions and purchases. However, back when the housing market was good folks were being inundated with ads and notices about buying for no money down, getting a home for the same as what you pay for rent, and so on. Back in the '90's and '00's, it seemed like there were times when everybody and their mother was either a part-time realtor or a loan originator. When you have the blind leading the blind, you get people that are making $30-40K/year trying to pay for $200K homes.

I see it more as a cultural issue than a racial issue. There are plenty of African-Americans (my wife and myself included) that did not get screwed in all of this, so the race card is not really necessary in the end. If anything, if your culture or upbringing did not grant you a great deal of financial education, that is when you really need to do your homework before you take a major step. Asking a realtor is not enough since some of them may just want the sale.

[arjay57]

That's a good article, but the title mischaracterizes the issue. It's not home ownership that's the problem, but the effects of racial segregation.

Put simply, the market penalizes integration: The higher the percentage of blacks in the neighborhood, the less the home is worth, even when researchers control for age, social class, household structure, and geography.

A 2007 study by George Washington University sociology professor Gregory D. Squires comments on why most whites avoid racially diverse neighborhoods: “Evidence indicates that it is the presence of blacks, and not just neighborhood conditions often associated with black neighborhoods (e.g., bad schools, high crime), that accounts for white aversion to such areas. In one survey, whites reported that they would be unlikely to purchase a home that met their requirements in terms of price, number of rooms, and other housing characteristics in a neighborhood with good schools and low crime rates if there was a substantial representation of African Americans.”

When blacks buy homes in majority minority neighborhoods, we increase the racial wealth gap. Whites who want to experience racial diversity at home also pay dearly.

[cqholt]

It's not home ownership that's the problem, but the effects of racial segregation.

Self-segregation.

[0nyxStation]

Originally Posted by equinox63

How Home Ownership Keeps Blacks Poorer Than Whites - Forbes

Your thoughts in relation to Metro Atlanta?

Good Thread!

As a black non home owner, I have some things to say, not only about american home ownership, but the spending habits of black people, the influece atlanta blacks have over blacks in america & Oprah Winfrey, but ill lurk a bit & comeback later.

[Ant131531]

Black people in Atlanta are too busy trying to impress their friends with BMWs and big azz houses while their home is on foreclosure and have tens of thousands of debt...but that's okay as long as your friend compliments you on your big house or nice car.

[lorilove]

Originally Posted by Ant131531

Black people in Atlanta are too busy trying to impress their friends with BMWs and big azz houses while their home is on foreclosure and have tens of thousands of debt...but that's okay as long as your friend compliments you on your big house or nice car.

You're hanging around with the wrong class of friends - this is not everyone's experience in Atlanta

[Ant131531]

I have family here who regularly tries to compete with my dad as far as materialistic things are concerned. My dad recently bought my mom a BMW and my uncle/aunt 4 weeks later traded in their own sons car and their Jeep for a luxury SUV. The difference between my dad and them is, he makes at least 2x as much as they do yearly.

The brother of said aunt had his 700,000 dollar house on foreclosure after they couldn't afford it somewhere on or near Lake Lanier. Being he is a nurse and the wife is an ATT employee(nothing special), it's hard to believe they are making over 110,000 a year. 110,000 a year won't afford a 700,000 dollar mortgage along with other expenses that come with said house when you have 3 kids.

People in Atlanta seem to have a tendency to have the best, most expensive stuff and new cars every 2 years or so. It's sickening. Get me a 1 bedroom in a nice neighborhood in Manhattan and I'd be happy.

[PKCorey]

Originally Posted by Ant131531

Black people in Atlanta are too busy trying to impress their friends with BMWs and big azz houses while their home is on foreclosure and have tens of thousands of debt...but that's okay as long as your friend compliments you on your big house or nice car.

but the spending habits of black people, the influece atlanta blacks have over blacks in america & Oprah Winfrey, but ill lurk a bit & comeback later.

As the user, AnsleyPark has stated numerous times on here, he has white friends who are in the same predicament so its not just blacks who are keeping up with the Jonese in America. Only difference is that the hole is way harder to dig out for blacks compared to whites, in most cases.

Stop being cultural conditioned...