Minority Households Suffer More Pain from the Recession in the U.S

The recent months, especially since the onset of the COVID-19 pandemic in the U.S, have had a lot of housing-related advocacy and intervention from various groups. One of the interventions that had a significant impact was the moratorium signed to ban eviction and foreclosure at local and national levels. According to a report from Urban Institute research associate Steve Brown, despite the interventions, neighborhoods dominated by people of color continue to suffer disproportionately from the pandemic-induced economy.

In reference to a Wall Street Journal article, the country’s recovery is not “V-shaped,” as experts and predicted, but rather “K-shaped.” This means that well-off households have fully recovered, whereas lower-income (and ethnically diverse) groups are still struggling to recover from the impacts of the pandemic.

Brown states that the Washington Post referred to the COVID-19 recession as “the most unequal in American history.”

Back in July, the Urban Institute initiated its tool to track the impact of COVID-19 by race and ethnicity, based on disaggregated Census data. According to Brown, the Institute added another tool, Phase Two, towards the end of October. From the data mined by the tools, the institute resolved that eight months into the country’s pandemic crisis, the economy had begun to recover, and some Americans had returned to work.

“But that recovery has not been felt equally; communities of color—Black and Latinx communities especially—continue to bear the brunt of the pandemic’s effects. With new COVID-19 cases rising nationwide, the halting progress of economic recovery could recede as Americans’ health remains in jeopardy.”

The indicators highlighted below most reveal the variations in the pandemic-related hardships, according to Brown:

  1. “More than one-quarter of adults live in households that drew down their savings or sold possessions to meet spending needs within the past week… Latinx adults were more likely than any other group to live in households that used savings or sold items to pay for spending needs in the previous week.
  2. “Nearly 15% of adults live in households in which someone used unemployment benefits to meet spending needs within the previous week… Consistent with their higher unemployment rate, people of color are significantly more likely than average to live in households with some unemployment insurance use.”
  3. “In mid-August, 15% of households were still behind on rent, with a higher share among Black and Latinx households.”
  4. “More than a quarter of adults expect an income loss in their household in the next four weeks…Despite a declining unemployment rate over the past months, in August, more than 26% of adults still expected to lose employment income in the following four weeks. And the share of expected losses is higher among communities of color, ranging from 31% among Asian households to 38% among Latinx households.”

The issue of wealth disparities between minority households and white households has existed for centuries now. This can be directly linked to the current situation where the minority households have suffered more pain from the pandemic’s impacts.

For how long will this disparities go on? That should be a burning question in contemporary society if we’re serious about justice and equality. Moreover, what can be done to combat these long-standing disparities and improve the lives of all American households? The Urban Institute argues that policies could help ease some of these challenges. Additionally, Brown suggests that the stimulus packages that Congress is considering would be helpful.

The Power Is Now, continues to keep you updated with the latest news in the real estate market, as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://thepowerisnow.com/vipagent/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/ericfrazier.

Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.frazier@fbol.com. Ph: 714- 475-8629.

Eric Lawrence Frazier MBA

President and CEO

The Power Is Now Media Inc.

Work cited.

https://dsnews.com/daily-dose/10-27-2020/minority-households-disproportionately-feel-recession-pain.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn