Housing, Homeownership, and the Racial Wealth Gap
Adam Briones, CEO
73%
$0.15
A little bit about CA Community Builders…
Non-profit public policy organization working to close the racial wealth gap, using housing and homeownership as our primarily tool.
A little bit about CA Community Builders…
Non-profit public policy organization working to close the racial wealth gap, using housing and homeownership as our primarily tool.
DEMAND
SUPPLY
A little bit about CA Community Builders…
SUPPLY
DEMAND
Zoning
Housing Production
BIPOC Developers
Access to Mortgages/
Capital
Theory of Change + Key Strategies
Produce research to identify problems and solutions.
Advocate to support impactful legislation and other policy campaigns.
Implement policy solutions and ensure good ideas turn into good actions.
Advocacy
Implementation
Research
Key Wins
Challenges must be viewed within the context of history
Redlining impacted zoning and housing supply AND overall wealth building for communities of color.
EAST OAKLAND
Map of Redlined Areas in Oakland (~1930s)
EAST OAKLAND
EAST OAKLAND
EAST OAKLAND
Map of Low-Income Areas in Oakland (2010s)
Homeownership Gap (CA)
BLACK
37%
-19%
-26%
Racial Wealth Gap (US)
-$0.85
-$0.85
What is wealth?
$800k
Assets
($700k)
Liabilities
What is wealth?
$800k
Assets
($700k)
Liabilities
$100k
Wealth
What is wealth?
$800k
Assets
($700k)
Liabilities
$100k
Wealth
What is wealth?
$800k
Assets
($700k)
Liabilities
$100k
Wealth
“The quality of life in U.S. society depends on the personal accumulation of wealth.”
- Keeanga Yamahtta Taylor
Racial Wealth Gap (US)
-$0.85
-$0.85
Education & Wealth differences (2019)
Source: St. Louis Federal Reserve
Education & Wealth differences (2019)
Black families with post-grad degrees have as much wealth as white families with high school degrees.
Source: St. Louis Federal Reserve
Education & Wealth differences (2019)
Latino families with bachelor’s degrees have less wealth than families with high school degrees.
Source: St. Louis Federal Reserve
Wealth gap today will continue on through inheritance
Source: Penn Wharton, University of Pennsylvania
Upcoming transfer of wealth from Boomers to Millenials
$68T
2030
Source: Coldwell Banker
Demographics in 2040 (CA)
-$0.85
-$0.85
Demographics in 2040 (CA)
Remember?
Remember?
-$0.85
-$0.85
Let’s talk homeownership
Homeownership, easy fix…right?
| A magic bullet that will solve the racial wealth gap? |
| |
| A flawless solution for every family and every community? |
| |
| It’s the American Dream? |
| |
Let’s stay away from myths
| A magic bullet that will solve the racial wealth gap. |
| The problem is too big for any one solution. |
| A flawless solution for every family and every community. |
| Every policy comes with trade offs that need to be evaluated. |
| It’s the American Dream. |
| The American Dream is bigger than owning a home. |
Let’s also be honest about the important role it plays
| A pillar of national economic policy |
|
|
| The primary way working class, POC build wealth |
|
|
| Important, if flawed, tool |
|
|
Homeowner vs renter wealth (2021; JCHS)
62x
28x
African Americans
Latinos
National thinkers and their position on homeownership
Fix It
Include as option
Start Over
| Andre Perry | Derrick Hamilton | Keeanga-Yamahtta Taylor |
| Brookings Institute | Kirwan Institute | Af. Am. studies at Princeton |
Area of focus | Devaluation of Black assets | Baby bonds | Historic redlining and “predatory inclusion” |
Themes covered | Appraisals; lending; student debt | Every child receives $$$ at birth | Negative impact of the private sector in housing |
Homeownership perspective | Fix the process through small dollar mortgage programs, increase down payment assistance, appraisal reform. | Use baby bonds to start a biz or buy a home | Fundamentally rethink housing just as we’re rethinking how other social goods are distributed. |
Where CCB falls on the spectrum
Fix It
Include as option
Start Over
| Andre Perry | Derrick Hamilton | Keeanga-Yamahtta Taylor |
| Brookings Institute | Kirwan Institute | Af. Am. studies at Princeton |
Area of focus | Devaluation of Black assets | Baby bonds | Historic redlining and “predatory inclusion” |
Themes covered | Appraisals; lending; student debt | Every child receives $$$ at birth | Negative impact of the private sector in housing |
Solutions offered | Fix the process through small dollar mortgage programs, increase down payment assistant, appraisal reform. | Use baby bonds to start a biz or buy a home | Fundamentally rethink housing just as we’re rethinking how other social goods are distributed. |
Three reasons why CCB focuses on homeownership
1 | It’s what our constituents (and other coalitions) are asking for. |
2 | National housing advocacy orgs and think-tanks support (with nuance and caveats). |
3 | Invest directly in families to redress historic discrimination. |
CCB approach: Start with problems
Most POC are renters
Benefits of homeownership for POC are smaller
Negative climate impacts from single-fam housing sprawl development
Homeownership isn’t the only way to build wealth
CCB approach: Start with problems
Most POC are renters
End exclusionary zoning, maximize affordable rental housing, fix CEQA
Benefits of homeownership for POC are smaller
Design program like CA Dream that max. wealth building while minimizing risk. Push lenders to do more through CRA programs.
Negative climate impacts from single-fam housing sprawl development
Promote and incentivize dense, multi-family homeownership
Homeownership isn’t the only way to build wealth
Promote BIPOC developers and small biz. entrepreneurship
CCB approach: Additional ideas that need support
Homeownership and innovation aren’t enemies
1 | Constructive criticism is invaluable, regardless of pro/anti- homeownership position. |
2 | We need to walk and chew (policy) gum at the same time. We need to make what exists better and come up with innovative ideas to solve for problems homeownership can’t. |
3 | Broad, ideologically diverse coalitions are needed to make change. There’s plenty of details to argue over, but working together on overlapping issues and priorities is where we win. |
Homeownership and innovation aren’t enemies
1 | Constructive criticism is invaluable, regardless of pro/anti- homeownership position. |
2 | We need to walk and chew (policy) gum at the same time. We need to make what exists better and come up with innovative ideas to solve for problems homeownership can’t. |
3 | Broad, ideologically diverse coalitions are needed to make change. There’s plenty of details to argue over, but working together on overlapping issues and priorities is where we win. |
73%
$0.15
Housing, Homeownership, and the Racial Wealth Gap
Adam Briones, CEO
Fed Reserve (2019)
Education & Wealth differences (2019)