FORECLOSURES & LA NEIGHBORHOODS

Did you know that Los Angeles County home sales prices jumped 77% during the housing boom of 2002-2006?

Towards the end of the housing boom (2005-2007), there were over 79,000 risky subprime loans in Los Angeles County.

Between 2007-2012, Los Angeles County had approximately 143,000 foreclosures.

Homeowners facing foreclosure struggled to make ends meet due to income or job loss and were frustrated trying to modify their mortgages and/or navigate through the foreclosure process.

The following graphs show that disadvantaged and minority neighborhoods were disproportionately more affected by the foreclosure crisis.

2007 2008 2009 2010 2011 2012

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Foreclosures by AverageHome Values

Foreclosures by Subprime RatesThe least affluent neighborhoods, those

with the lowest average home values, had the highest foreclosure rates, which peaked

in 2008

Los Angeles County neighborhoods where

minorities are an overwhelming majority of homeowners had the

highest foreclosure rates

Neighborhoods targeted for predatory

lending (with the highest subprime lending rate)

suffered the highest foreclosure rates, which

peaked sharply in 2008

2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012

Foreclosures by Minority* Share of Homeowners

UCLA Asian American Studies Center

Neighborhoods in the Lowest quartile had average home values of $405k or lowerNeighborhoods in the Middle Half had average home values from $406k to $614kThe quartile of neighborhoods with the Highest home values had averages of $615k or higher

The quartile of neighborhoods with the Highest subprime lending rates were 22% or more Neighborhoods in the Middle Half had subprime lending rates of 9% to 22%The quartile of neighborhoods with the Lowest subprime lending rates were 9% or lower

Minorities comprised more than 79% of homeowners in the quartile of neighborhoods with the Highest minority presence Neighborhoods in the Middle Half had a minority share of homeowners between 79% to 16%In the quartile of neighborhoods with the Lowest minority presence, minorities were no more than 16% of homeowners

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UCLA Center for the Study of Inequality Supported by Ford FoundationPr

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*Minority share is the proportion of homeowners who are African American and/or Latino

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*Minority share is the proportion of homeowners who are African American and/or Latino

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2007 2008 2009 2010 2011 2012

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Num

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Foreclosures by AverageHome Values

Foreclosures by Subprime RatesThe most affluent neighborhoods, with

the highest average home values, had the lowest

foreclosure rates, which moderately fluctuated during the housing

crisis

Predominately non-minority

neighborhoods had the lowest foreclosure

rates, which modestly peaked later

in 2011

Neighborhoods that had the best access to traditional home loans (with the lowest subprime

lending rates) had the lowest foreclosure rates, which

peaked at a modest level late in the crisis

2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012

Foreclosures by Minority* Share of Homeowners

UCLA Asian American Studies Center

Neighborhoods in the Lowest quartile had average home values of $405k or lowerNeighborhoods in the Middle Half had average home values from $406k to $614kThe quartile of neighborhoods with the Highest home values had averages of $615k or higher

The quartile of neighborhoods with the Highest subprime lending rates were 22% or more Neighborhoods in the Middle Half had subprime lending rates of 9% to 22%The quartile with the Lowest subprime lending rates were 9% or lower

Minorities comprised more than 79% of homeowners in the quartile of neighborhoods with the Highest minority presence Neighborhoods in the Middle Half had a minority share of homeowners between 79% to 16%In the quartile of neighborhoods with the Lowest minority presence, minorities make up no more than 16% of homeowners

$

$$

UCLA Center for the Study of Inequality Supported by Ford FoundationFORECLOSURES & LA NEIGHBORHOODS

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Did you know that Los Angeles County home sales prices jumped 77% during the housing boom of 2002-2006?

Towards the end of the housing boom (2005-2007), there were over 79,000 risky subprime loans in Los Angeles County.

Between 2007-2012, Los Angeles County had approximately 143,000 foreclosures.

Homeowners facing foreclosure struggled to make ends meet due to income or job loss and were frustrated trying to modify their mortgages and/or navigate through the foreclosure process.

The following graphs show that advantaged and non-minority neighborhoods were disproportionately less affected by the foreclosure crisis.