Abstract
Racial disparities in homeownership in Minnesota are among the largest in the nation. In this study, we document the widening racial disparities in homeownership rates and credit market conditions during the Great Recession using Census and HMDA data. During the Great Recession, the disparities in both credit lending and loan application rates widened, which contributed to the widening racial disparities in homeownership rates. Our study suggests that the Great Recession has disproportionately impacted the experience of black families
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Notes
The analysis in this study focuses on the five counties (Hennepin, Ramsey, Dakota, Anoka and Washington counties) in the Minneapolis-St. Paul Metro area in order to restrict the study to a geographic region that is identical across datasets and over time.
We conducted the regression analysis using logit and probit as well as linear probability models. Our results are consistent across the different estimation methods. We have included the regression results from the logit and probit models, which are available in the Appendix of this paper.
The seven county metro include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties.
For the list of O*NET-SOC code used to defined professional occupation, see https://www.nafsa.org/uploadedFiles/Chez_NAFSA/Resource_Library_Assets/Regulatory_Information/DOLappendixD.pdf
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This paper draws upon “Racial Disparities in Home Ownership and Mortgage Lending Discrimination,” an unpublished paper prepared for presentation at the Federal Reserve Bank of Minneapolis, Opportunity and Inclusive Growth Institute, October 26, 2017, Minneapolis Minnesota. Helpful feedback and comments were provided by Myron Orfield, University of Minnesota Law School; Mark Wright, Federal Reserve Bank of Minneapolis; Marcus Casey, University of Illinois at Chicago; Bhash Mazumder, Federal Reserve Bank of Chicago; Veronica Guerrieri, University of Chicago; and Neel Kashkari, Federal Reserve Bank of Minneapolis. Able research assistance was provided by Yufeng Lai and Diana Vega Vega.
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Myers, S.L., Lee, W.F. Racial Disparities, Homeownership, and Mortgage Lending in the Post-Great Recession Period: the Case of the Minneapolis-St. Paul Metropolitan Area. J Econ Race Policy 1, 47–59 (2018). https://doi.org/10.1007/s41996-018-0018-4
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DOI: https://doi.org/10.1007/s41996-018-0018-4