Ethnic, Racial, and Neighborhood Mortgage Inequality: The case of Los Angeles, Fresno, and Sacramento
Kathryn Greenler | José Loya | Adam Briones
The relationship between the spatial distribution of loan outcomes and neighborhood racial composition is a critical aspect of understanding inequality in homeownership opportunities in the United States. Homeownership is central to creating, growing, and maintaining wealth — particularly for communities of color. In the long-term, disparities in homeownership not only shape ethno-racial inequality, they also drive the wealth gap across generations. Beyond these economic and financial benefits, homeownership is also associated with increased access to neighborhood resources, including expanded social networks, lower crime rates, and higher quality public schools.
This brief critically examines the relationship between the spatial distribution of loan outcomes and two levels of neighborhood racial composition in Los Angeles, Fresno and Sacramento. The ultimate findings prompt policy suggestions aimed at addressing these disparities and promoting more equitable access to homeownership in California and beyond.
