This document summarizes the economic impacts of the recession on the African American community. It finds that African American homeownership, income, employment, and wealth were disproportionately impacted. Unemployment rates for African Americans remain twice as high as whites. While all groups saw declines in income and wealth during the recession, the drops were largest for people of color who rely more on housing for wealth. The summary concludes that significant recovery in the African American housing market will require non-traditional approaches to address issues like blight, foreclosures, and access to credit.

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

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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

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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

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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.