According to a recent MReport, new analysis from Zillow shows that African-American and Latin homeowners could be more cost burdened due to the COVID-19 outbreak. Zillow reported that minority homeowners have been adversely affected by the impacts of COVID-19. Of the 22 million Americans who filed unemployment in the last month, roughly 13% were Latin, 10% were Asian, and 10% were African-American. In addition, these households face a greater rent burden. They have less left over to pay other expenses after they pay their rent or mortgage. The report stated that white households spent less of their income on rent than minority households. White households spent 25%, African-American households spent 28%, and Latin and Asian households spent 30%.
WHAT ELSE DID THEY FIND?
Skylar Olsen, Senior Principal Economist at Zillow stated, “While it’s encouraging that many who receive government assistance appear to be on solid footing for a few months, it’s important to remember that some workers will see labor disruptions, such as a loss of hours, that don’t qualify them for these unemployment benefits that are so crucial right now. And if the pandemic were to last beyond the summer, it could have lasting impacts that push many more into housing insecurity.” Additionally, the report included that low-income households could struggle with housing insecurity if workers continue to go without income. Black Knight reported that 3.4 million American homeowners have entered into a COVID-19 forbearance plan. This is half a million more homeowners than April 16 data from Black Knights.
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