Racial Wealth Divide in South Bend_ProsperityNow_Final_Rev

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POPULATION INCOME LIQUID ASSET POVERTY UNEMPLOYMENT RATE of what White households make. White and Black unemployment is lower than found nationally. Income is lower overall in South Bend but Blacks make more likely to be in liquid asset poverty than whites. Blacks are For more information, visit www.prosperitynow.org 4.9% The Racial Wealth Divide in South Bend SOUTH BEND HIGHLIGHTS RACIAL WEALTH DIVIDE IN SOUTH BEND 1/2 Cost-Burdened: Percentage of mortgaged owners spending 30% or more of household income on selected monthly owner costs; such owners are at risk of foreclosure or homelessness if they suffer a decline in income. For more information, visit www.prosperitynow.org 9.2% WHITE BLACK 2X In many ways, the history of South Bend represents a history shared by much of the Midwest—one that reflects the economic challenges born of a declining industrial sector and growing racial diversity. South Bend was well positioned for 20th-century economic prosperity due to its distinct location near the St. Joseph River and its connection to major American rail lines. Because of its proximity to water and rail, South Bend built a strong industrial economy that provided a solid supply of jobs. As a result, the city saw an influx of new residents in the first half of the 20th century—especially African Americans—who came as part of the Great Migration. Unfortunately, like many cities in the region, South Bend’s industrial age came to a halt in the mid-20th century. American deindustrialization caused once-thriving factories to shut down. With jobs becoming scarce, an exodus of residents began in the 1960s and continued over the 50 years that followed. At its peak in the 1960s, South Bend had a population of just over 130,000, but today, it has 100,590 residents, marking a 23% decline in population. Losing almost a quarter of the population has had a domino effect on the local economy that has affected all racial groups in the city. Currently, South Bend is 54% White, 27% African American, 13% Hispanic and 1.4% Asian American. All racial groups in South Bend exhibit higher-than-average economic insecurity, but data suggest that economic insecurity is particularly pronounced for households of color. These households are significantly more likely than their White counterparts to be burdened by their housing costs, to live in liquid asset poverty and to be unemployed. Hispanic households in South Bend have a 32.9% income poverty rate, which is 10 percentage points higher than the national Hispanic income poverty rate. Hispanic households in South Bend are more likely to own their homes, but the median value of their homes is $60,000, which is one-third of the national median home value. Asian American households in South Bend aren’t faring much better. Even though Asian Americans only comprise 1.4% of the city’s population, these households have significantly lower median incomes compared to the national average. At $31,313 annually, Asian Americans in South Bend are making less than half of the $74,245 annual median income for Asian Americans nationwide.