The Homeownership Rate and The Kerner Commission

 

photo by Marion S. Trikosko

President Johnson with some members of the National Advisory Commission on Civil Disorders, also known as the Kerner Commission

The Economic Policy Institute released a report, 50 Years After The Kerner Commission.  It finds that “African Americans are better off in many ways but are still disadvantaged by racial inequality.” (1) The report opens,

The year 1968 was a watershed in American history and black America’s ongoing fight for equality. In April of that year, Martin Luther King Jr. was assassinated in Memphis and riots broke out in cities around the country. Rising against this tragedy, the Civil Rights Act of 1968 outlawing housing discrimination was signed into law. Tommie Smith and John Carlos raised their fists in a black power salute as they received their medals at the 1968 Summer Olympics in Mexico City. Arthur Ashe became the first African American to win the U.S. Open singles title, and Shirley Chisholm became the first African American woman elected to the House of Representatives.

The same year, the National Advisory Commission on Civil Disorders, better known as the Kerner Commission, delivered a report to President Johnson examining the causes of civil unrest in African American communities. The report named “white racism”—leading to “pervasive discrimination in employment, education and housing”—as the culprit, and the report’s authors called for a commitment to “the realization of  common opportunities for all within a single [racially undivided] society.” The Kerner Commission report pulled together a comprehensive array of data to assess the specific economic and social inequities confronting African Americans in 1968.

Where do we stand as a society today? In this brief report, we compare the state of black workers and their families in 1968 with the circumstances of their descendants today, 50 years after the Kerner report was released. We find both good news and bad news. While African Americans are in many ways better off in absolute terms than they were in 1968, they are still disadvantaged in important ways relative to whites. In several important respects, African Americans have actually lost ground relative to whites, and, in a few cases, even relative to African Americans in 1968. (1, footnote omitted)

I was particularly shocked by one figure in the report:

One of the most important forms of wealth for working and middle-class families is home equity. Yet, the share of black households that owned their own home remained virtually unchanged between 1968 (41.1 percent) and today (41.2 percent). Over the same period, homeownership for white households increased 5.2 percentage points to 71.1 percent, about 30 percentage points higher than the ownership rate for black households. (4)

It is pretty extraordinary that the homeownership rate for African Americans has not really gone up, given all of the resources that were directed to increasing it. The FHA, Fannie, Freddie and other government programs have all focused on increasing that rate for decades. People of different political stripes will read what they want into this state of affairs. My own take is that wage instability has driven down homeownership rates across the board, but that it has hit African American households particularly hard. Households cannot commit to homeownership if they cannot reasonably depend on getting their wages month-in, month-out.

Affirmatively Furthering Fair Housing

Julian_Castro_by_Gage_Skidmore

Fast on the heels of the recent Supreme Court decision upholding disparate impact Fair Housing claims, the Department of Housing and Urban Development has issued a final rule, Affirmatively Furthering Fair Housing:

Through this final rule, HUD provides HUD program participants with an approach to more effectively and efficiently incorporate into their planning processes the duty to affirmatively further the purposes and policies of the Fair Housing Act, which is title VIII of the Civil Rights Act of 1968. The Fair Housing Act not only prohibits discrimination but, in conjunction with other statutes, directs HUD’s program participants to take significant actions to overcome historic patterns of segregation, achieve truly balanced and integrated living patterns, promote fair housing choice, and foster inclusive communities that are free from discrimination. The approach to affirmatively furthering fair housing carried out by HUD program participants prior to this rule, which involved an analysis of impediments to fair housing choice and a certification that the program participant will affirmatively further fair housing, has not been as effective as originally envisioned. This rule refines the prior approach by replacing the analysis of impediments with a fair housing assessment that should better inform program participants’ planning processes with a view toward better aiding HUD program participants to fulfill this statutory obligation.

Through this rule, HUD commits to provide states, local governments, public housing agencies (PHAs), the communities they serve, and the general public, to the fullest extent possible,with local and regional data on integrated and segregated living patterns, racially or ethnically concentrated areas of poverty, the location of certain publicly supported housing, access to opportunity afforded by key community assets, and disproportionate housing needs based on classes protected by the Fair Housing Act. Through the availability of such data and available local data and knowledge, the approach provided by this rule is intended to make program participants better able to evaluate their present environment to assess fair housing issues such as segregation, conditions that restrict fair housing choice, and disparities in access to housing and opportunity, identify the factors that primarily contribute to the creation or perpetuation of fair housing issues, and establish fair housing priorities and goals. (1-2)

The tenacious hold that segregation has had over so many communities has been so difficult to address and HUD’s past attempts to do so have come up short so often. One can hope that this change in strategy from an “analysis of impediments” to “a fair housing assessment” can make incremental improvements throughout the nation.

It will be up to the next administration to really implement this rule because at first the rule just requires more planning about fair housing on the part of local communities. It is only later, when HUD evaluates their success and decides whether there will be any consequences for failure, that the rule’s effectiveness can be identified.