Categorized | Residential

Minority Neighborhoods Suffering Most from Housing Crisis

Please Share!

While the housing decline has affected people all over the state of Florida, it has truly been detrimental to neighborhoods with large minority populations. On average, homes in the state have fallen roughly thirty to forty percent of their peak values in 2006. However, in such predominantly minority communities as Pine Hills, and Washington Shores, prices have dropped over eighty percent in the last five years.

When looking at the statistics to identify a cause for the sharp decline, there are a number of different factors that stand out from the rest. Unemployment has hit minorities particularly hard in the state. Currently, minorities are struggling with an unemployment rate of over seventeen percent. The unemployment rate for whites in the state is at eight percent. The very high unemployment rate amongst minorities has been a major contributing factor to an increase of foreclosure rates in the community.

Experts also believe that many minority homebuyers were pushed to take upon subprime mortgages when buying their home during the housing boom experienced from 2003 to 2007. As such, home values have plummeted since the start of the housing crash.

There is hope that there will be a turnaround in the housing markets of minority communities. However, residents believe that action must be taken against investor landlords, some of whom purchased homes and then allowed them to fall into foreclosure.

For the majority of minority communities, the solution to the situation is far simpler than so-called experts are looking to find. With an improved job market, homeowners will be less likely to fall into foreclosure, and thus, will make it possible for home values to increase once again.

Please Share!

About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

Leave a Reply

Twitter Chat