Racial Discrimination in the U.S. Housing and Mortgage Lending Markets: A Quantitative Review of Trends, 1976–2016

We examine trends in racial and ethnic discrimination in U.S. housing and mortgage lending markets through a quantitative review of studies. We code and analyze as a time series results from 16 field experiments of housing discrimination and 19 observational studies of mortgage lending discrimination. Consistent with prior research, we find evidence of a decline in housing discrimination from the late 1970s to the present. Our results show that this trend holds in both the national audits sponsored by the U.S. Department of Housing and Urban Development (HUD) and in non-HUD studies. The decline in discrimination is strongest for discrimination that involves direct denial of housing availability, for which discrimination has declined to low levels. The downward trend in discrimination is weaker for measures reflecting the number of units recommended and inspected, and significant discrimination remains for these outcomes. In the mortgage market, we find that racial gaps in loan denial have declined only slightly, and racial gaps in mortgage cost have not declined at all, suggesting persistent racial discrimination. We discuss the implications of these trends for housing inequality, racial segregation, and racial disparities in household wealth.

     

Does intergenerational social mobility affect antagonistic attitudes towards ethnic minorities?

Up till now, no study satisfactorily addressed the effect of social mobility on antagonistic attitudes toward ethnic minorities. In this contribution, we investigate the effect of educational and class intergenerational mobility on ethnic stereotypes, ethnic threat, and opposition to ethnic intermarriage by using diagonal mobility models. We test several hypotheses derived from ethnic competition theory and socialization theory with data from the Social and Cultural Developments in The Netherlands surveys (SOCON, waves 1995, 2000, and 2005) and The Netherlands Kinship and Panel Study (NKPS, wave 2002). We find that the relative influence of social origin and social destination depends on the specific origin and destination combination. If one moves to a more tolerant social destination position, the influence of the social origin position is negligible. If on the other hand, one is socially mobile to a less tolerant social position, the impact of the origin on antagonistic attitudes is substantial and may even exceed the impact of the destination category. This confirms our hypothesis that adaptation to more tolerant norms is easier than adaptation to less tolerant norms. We find only meagre evidence for the hypothesis that downward mobility leads to frustration and consequently to more antagonistic attitudes.     

How Long are Exposures to Poor Neighborhoods? The Long-Term Dynamics of Entry and Exit from Poor Neighborhoods

Although discussions of poor neighborhoods often assume that their residents are a distinct population trapped in impoverished environments for long durations, no past research has examined longitudinal patterns of residence in poor neighborhoods beyond single-year transitions. Using data from the Panel Study of Income Dynamics from 1979 to 1990 matched to census tract data, this paper provides the first estimates of duration of stay and rates of re-entry in poor (20%+ poor) and extremely poor (40%+ poor) census tracts. The results indicate that (1) there is great racial inequality in longitudinal patterns of exposure to poorneighborhoods – mostAfrican Americans will live in a poor neighborhood over a 10 year span, contrasted to only 10 percent of whites; (2) exits from high poverty neighborhoods are not uncommon, but re-entries to poor neighborhoods following an exit are also very common, especially among African Americans; and (3) length of spell in a poor neighborhood is positively associated with low income, female headship, and, most of all, black race. Little of the racial difference is accounted for by racial difference in poverty status or family structure. Implications for research and public policy are discussed.