1 / 13

Housing Trouble Hits Some Harder

Housing Trouble Hits Some Harder. An Evaluation of the Truth. This article explains how widespread the mortgage problem is spreading in America It uses the government’s new formula:

waseem
Download Presentation

Housing Trouble Hits Some Harder

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Housing Trouble Hits Some Harder An Evaluation of the Truth

  2. This article explains how widespread the mortgage problem is spreading in America • It uses the government’s new formula: If you pay more than 38% of your pretax income on mortgage, property taxes, and home insurance expenses, you qualify for the new government assistance program.

  3. “When it comes to homeownership, Latinos in New Jersey, single parents in California, and senior citizens in Rhode Island all have something in common: More than a third have an unaffordable mortgage.” • Sounds like a national epidemic…but…

  4. “unaffordable mortgage” means they pay at least 38% of their pretax income on housing It only describes 3 groups of people (Latinos, single parents, senior citizens) in 3 distinct areas (NJ, CA, RI) These are typically low-income demographics in areas where housing is very expensive

  5. “Just under a third of Hispanic homeowners [can’t pay their mortgage], compared with a quarter of Asian and black households, and nearly 16% of white households.”

  6. This is misleading in the fact that… • A lot of whites don’t have mortgages to begin with (rich, house paid off, etc.) • Minorities make up a traditionally lower income bracket

  7. US Census Data on Domestic Homeownership 2007 • White- 72% • Black- 47% • Asian/Native Hawaiian/Pacific Islander- 60% • Hispanic or Latino- 49%

  8. If we take these numbers and calculate the total percentage of each race that “can’t pay” their mortgage, we get: • Latino (.5 x .33) 16% • Asian (.6 x .25) 15% • Black (.47 x .25) 12% • White (.72 x .16) 12% • or the of all the ____ that are in America, this number can’t pay their mortgage

  9. Roughly the same amount of people in each race “can’t pay their mortgage” • The information is the same, it is just being presented in a different way • Ergo, the result is two opposing viewpoints that disagree about the same data

  10. To back up their claims, the report gives further information: • “In much of the country, the trend is more pronounced. For example, of those who [can’t pay their mortage]…”

  11. “40% of black borrowers in CA, NV, OR, and MA” • “More than 30% of Asian borrowers in CA & FL” • “Nearly half of Hispanic homeowners in RI, and at least 40% in AK, CA, FL, HI, MD, NJ, and NY”

  12. Once again, information skewed when presented: • The demographics don’t correspond, and the regions are traditionally expensive housing areas

  13. Be careful what you read! By Kenny S, Dawson V, Ariel B

More Related