Nareb convention 08072011

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Nareb convention 08072011

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

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