Nareb convention 08072011

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  • 1. From Recession to Recovery:The Status and Outlook for Economic Growth in the African-American Community
    Specially Prepared for
    The
    National Association of Real Estate Brokers
    64th Annual Convention
    Presented by:
    LaVaughn M. Henry, Ph.D.
    Vice President & Sr. Regional Officer
    August 7, 2011
  • 2. 2
    Economic Growth
    Housing
    Income
    &
    Wealth Creation
    Employment
  • 3. 3
  • 4. Homeownership Rates have decreased for all demographics groups since their peak…
    4
    Source: Census Bureau
  • 5. …but African-American Homeownership Rates fell sharply during the economic boom period..
    5
    Source: Census Bureau
  • 6. …much before House Price Appreciation began to fall…
    6
    Correlation Coefficient: 0.34
    Source: S&P Case Shiller, Mortgage Bankers Association
  • 7. …and much before Subprime Foreclosure Rates began to rise…
    7
    Correlation Coefficient: -0.28
    Source: Mortgage Bankers Association
  • 8. …and before Unemployment Rates for African-Americans began to rise.
    8
    Correlation Coefficient: -0.31
    Source: S&P Case Shiller, Mortgage Bankers Association
  • 9. 9
  • 10. Unemployment Rates of African-Americans remain twice as high as that of white Americans…
    10
    Source: : Bureau of Labor Statistics
  • 11. …with Employment Growth of African-Americans suffering greatly during the Great Recession.
    11
    Source: : Bureau of Labor Statistics, Current Population Survey
  • 12. A major cause of the decline has been the loss of jobs in the manufacturing and construction sectors…
    12
    Pre-Bubble
    Recovery
    Recession
    Housing Bubble
    Source: : Bureau of Labor Statistics, Current Population Survey
  • 13. 13
  • 14. Median Household Income fell significantly for all groups during the Great Recession…
    14
    Source: : Census Bureau
  • 15. …however, Median Net Worth declined was largest for persons of color…
    15
    Source: : PEW Research Center
  • 16. …with the collapse of the housing market being the primary cause of the decline.
    16
    Median Net Worth of Households with and Without Home Equity, 2005 and 2009
    Source: : PEW Research Center
  • 17. African-Americans and Hispanics are much more dependent on the housing market for wealth creation.
    17
    Source: : PEW Research Center
  • 18. However, despite the downturn, wealth concentration grew within all groups.
    18
    Share of Wealth Held by the Wealthiest 10% of Households, 2005 and 2009
    Source: : PEW Research Center
  • 19. So where do we go from here?
    Wealth creation in the AA community is critically dependent upon improvement in the labor market
    National unemployment rates are projected to remain high through at least the end of 2012, thwarting significant improvement in the housing market
    Significant recovery in the AA housing market will require non-traditional approaches to address issues of economic blight, foreclosure, and credit
    19
  • 20. 20
    Thank You.