According to a recent MReport, people and neighborhoods of color are disproportionately suffering from the COVID-19 fallout. Even after months of housing policy intervention, such as eviction and foreclosure bans at both state and federal levels, people of color are struggling to recover from the pandemic. The report discovered this information from Urban Institute research associate Steve Brown. Brown refers to a Wall Street Journal report that stated the nation’s recovery is not “V-Shaped”, it is actually “K-Shaped”. This means that affluent households have recovered, while low income households have not. These lower-income groups are often ethnically diverse. Additionally, the Washington Post believes the COVID-19 recession “the most unequal in American history”. In July, the Urban Institute began tracking COVID-19 effects by race and ethnicity. After reviewing the data collected, the Institute has concluded that the economy has started to recover and Americans are returning to work. However, the recovery has not been equal. Communities of color, especially Black and Latinx communities, continue to “bear the brunt of the pandemic’s effects”. With COVID-19 cases rising across the country, the economic recovery could be halted, because American’s health remains at risk. 


According to the research done by the Urban Institute, more than 25% of adults live in households that lost some of their savings or sold possessions to meet spending needs within the last week. Latinx adults were more likely than any other group to live in a household that had to do either of those things for extra money. The study found that people of color are significantly more likely to live in a household with unemployment insurance use. In August, roughly 15% of households were behind on their rent. A large majority of these households were Black and Latinx. Finally, the report stated that while unemployment rates have been dropping, more than a quarter of adults are expecting a loss of income in their household in the next month. The share of expected losses is higher among communities of color. The Urban Institute believes that policy, such as stimulus packages, could help alleviate some of these problems. Brown stated, “After the election, policymakers should work quickly to provide additional relief to prevent the damage of the past few months from solidifying into a more permanent social and economic devastation. They should do more to explicitly address the challenges facing people of color”.   

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