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The state of housing for the Hispanics in Sacramento CA, by Serina Lowden.
The state of housing for the Hispanics in Sacramento CA
By Serina Lowden
For the middle class, homeownership has always been the path to achieve generational wealth. However, a recent report by Public Policy Institute of California (PPIC) show that just 17 percent of the Black and Latino households could afford a median-priced home in California in 2021. While all Californians faced a higher-price barrier in 2021, another report by C.A.R shows that only 26 percent of the California households earned the minimum annual income of $144,400 which was needed for the household to afford the monthly payment of a home priced at $786,750 which was down from 28 percent in 2020 and 30 percent in 2019.
About 34 percent of the White households could afford a median priced home, down from 38 percent in 2020 while 40 percent of the Asian Homebuyers could afford a home in 2021 down from 43 percent in 2020. Going with the current market rates and market conditions, it is highly likely that such disparities could continue to grow this year and beyond.
The Latino households in California, more so in Sacramento earned a median income less than those of the state’s white and Asian families. This therefore meant that many of them were locked out of home buying opportunities as they could not afford to buy.
In addition, the pandemic also played a huge role in pushing many California home prices over the roof which ultimately spurred a demand for the single-family homes. Many families were looking for more space and were also able to move far places as they could now work remotely. Meanwhile, many Latino Families and Blacks have moved to more affordable parts of the state during this pandemic in comparison to other ethnic groups. If this is sustained, it could further segregate the state and the county especially in areas where home prices are high.
Sacramento lawmakers and advocate are also actively seeking to boost the homeownership rate for the Black and Latino Families. Throughout the state, several programs have been initiated to increase homeownership through down payment assistance and one of the largest is overseen by the California Housing Finance Agency which provides as much as $11,000 of down payment assistance.
But, while this may be a bold move, it is important that we understand that assistance programs will only do so much to counterbalance a broader economic system that has left many people of color on an unequal footing, and while it does work, the best possible solutions would be those that explores models outside the traditional mortgage market.
When it comes to the California housing market, Latinos and African Americans often face the challenges including having the largest share of student debt loans and also pay a price as a result of discrimination. If we are to help these populations, we must start there.
