Hispanic areas lag in housing recovery
Boston Globe - 02/09/2015
Hispanic neighborhoods tend to have higher populations of immigrants who were first-time home buyers and were put at risk by lenders who waived credit checks and minimum-income levels, housing specialists said.
Many of these subprime loans were for multifamily homes, which are popular among low-income residents because they can rent out units to generate income.
All of this activity led to an increase in home sales and skyrocketing prices in lower-income neighborhoods. But then the housing bubble burst in the middle of the last decade, the financial crisis followed, and many workers lost jobs.
The result: People who were barely making mortgage payments before the recession went into foreclosure, causing home prices around them to plummet.
“It’s the old story of what goes up fastest falls fastest,” said Barry Bluestone, director of the Dukakis Center for Urban and Regional Policy at Northeastern University.