Racial Wealth Divide in South Bend_ProsperityNow_Final_Rev

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7 7 The Racial Wealth Divide in South Bend SEPTEMBER 2017 7For more information, visit www.prosperitynow.org For more information, visit www.prosperitynow.orgFor more information, visit www.prosperitynow.org UNEMPLOYMENT RATE HOUSING IN SOUTH BEND Homeownership has historically been the greatest source of wealth for middle-income Americans. Like many deindustrialized cities in the Midwest, South Bend has lower property values, which can be viewed as a positive attribute in terms of affordability but means the largest asset for most Americans is of limited value. The average property value in the city is $81,500, a whopping $97,100 less than the national average property value of $178,600. Though homes are more affordable in South Bend than elsewhere, this has not led to increased homeownership rates for most residents. Almost every racial and ethnic group—including White residents—has a lower homeownership rate compared to the national average. Latino households remain an exception to these trends: 63% of Latinos in South Bend own their homes, which is higher than the national rate for Latinos. However, the median property value for Latino-owned homes in South Bend is actually the lowest among all racial groups in the city at $60,000. By comparison, African Americans are less likely (34.6%) to own their homes, but the median value of African American- owned homes stands at $70,000. On the other hand, White households are more likely to own their homes (68%), and their homes are likely to be worth more ($89,000) than their neighbors of color. When it comes to housing cost burdens, only 27% of homeowners in South Bend spend more than 30% of their incomes on housing expenses. However, for renters, that number skyrockets to 55%. This illustrates a growing need for both affordable rental properties, and for homeownership support that enables households of color in South Bend to build wealth.