The Hispanic Housing Bubble in Graphs

Steve Sailer, VDARE, February 15, 2015

I may have pointed out once or twice that the disastrous home price bubble of a decade ago was closely intertwined, via numerous causal pathways, with decades of Hispanic immigration and diversity ideology. Here’s a new graph from a report by Zillow on different ethnic neighborhoods that makes my point for me: The green line represents the median home value in Hispanic neighborhoods and the blue line white neighborhoods across the country. The green line soared out of control before dropping 46.3% (and still being down 24.2%).

HispanicBubble1

HispanicBubble2

It’s widely assumed that the Hispanic Tidal Wave we are always hearing about regarding elections couldn’t possibly have had any impact on home prices because Hispanics are so few in number and so poor, but during the bubble, the median home prices in Hispanic neighborhoods was higher than in white neighborhoods, nationally. Here’s median home values in thousands of dollars:

HispanicBubble3

You can see the on-going Chinese Money Laundering boom in the purple (Asian) line.

You can look up your own metropolis on Zillow’s handy page.

Here’s the enormous Los Angeles metropolitan area indexed to 2000=100. Versus their peak, white neighborhoods in Greater L.A are currently down 1.6% in median home price, while Hispanic and black neighborhoods are still down over 20%:

HispanicBubble4

For example, from the Boston Globe, here’s a report on Boston:

Hispanic areas lag in housing recovery

By Katie Johnston GLOBE STAFF FEBRUARY 09, 2015

Hispanic communities were particularly vulnerable to unscrupulous lenders during the last housing boom and the hardest hit by the bust, experiencing the sharpest drop and slowest recovery in home values, according to a study to be released Monday.

The study, by the online real estate company Zillow, found that . . . Nationwide, Hispanic areas also suffered the biggest declines, with home values still down 24 percent from their peak nearly a decade ago, according to the study.

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.

Yanko Matias, a native of the Dominican Republic, wanted a house where he and his wife could raise their two young children. So they bought a single-family home in Lynn in 2007, taking out a loan for the entire purchase price of $232,000.

But in early 2009, Matias lost his landscaping job. He found another job at a rental company, but was making considerably less money and called the bank about modifying his loan to reduce the payments. The bank refused, telling him his house was worth only $180,000, less than what he owed on his mortgage.

By the end of the year, he was in foreclosure.

Matias, 39, who now works as a taxi driver and still lives in the house, has been fighting the bank ever since. But he has little hope his home will regain its value and fears he will eventually lose it.

“I worry every day about it,” he said.

To analyze housing values, Zillow used Census data to categorize ZIP codes by racial or ethnic groups that make up a plurality of the population and estimated the median home value within each area. . . .

Many housing specialists, however, see the uneven housing recovery breaking down not by race, but by immigrant status.

“They were basically the most innocent consumers on the marketplace,” said Eloise Lawrence, a staff attorney at Harvard Legal Aid Bureau who works with struggling Lynn tenants and homeowners. “They knew the least about what was happening, and they were the most eager to climb onto the first rung of the American dream.” . . .

As disconcerting as it is that Hispanic homeowners were hurt so much by sagging home values, Lawrence, of the Harvard Legal Aid Bureau, said the recovery of home values in white and black communities is almost as worrisome: “We may be in another speculative bubble.”

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  • Biff_Maliboo

    Guess we should’ve invested heavily in turquoise and gold house paint.

  • Reynardine

    Repeat to yourself “they’re just coming here to work, they only have positive economic effects, they’re just coming here to work, sending the money back home…”

    • Chip Carver

      Repeat to yourself “…Obama’s in charge, he takes orders from no one…Obama’s in charge…”

      • Ringo Lennon

        Obama takes orders from George Soros and the NWO.

  • Katie Johnson of the Boston Globe blames “unscrupulous lenders”, and not idiots who didn’t know what they were getting into when they applied for home loans. How many of the homes in these Hispanic neighborhoods were actually occupied by renters, who’s landlords unwisely bought into the speculative housing boom? I saw an interview with one dimwit (white) woman who cashed out her 401(k) and sank it all into Phoenix area real-estate, on the blithe assumption that she could then flip the properties.

    • haroldcrews

      Greed has impoverished many a fool.

      • Michael Robert Ryan

        That’s downright siggable. Sounds like something you might find in Shakespeare.

    • adplatt126

      Easier to blame the vague specter of capitalist exploitation and the incorrigible, unending scourge of racist cruelty by the invisible white man in a suit, than brown stupidity, which is everywhere visible.

      • SFLBIB

        Well, there is plenty of white stupidity, like Barney Frank who set up the first bubble.

        • Canadian Friend

          There is a bit more of white stupidity on the political left.

          • SFLBIB

            You will get no argument from me on that.

  • Reynardine

    Cue Bossman trying to convince us this is a good thing in 3… 2… 1…

  • SentryattheGate

    Just what the US needed–another burdensome group to take by the hand and lead them through life! Reminds me of what Albert Schweitzer had to say “….they are our younger brothers by centuries, we will forever have to take care of them.”

  • How the hell does a guy with a landscaping job get pre-approved for a loan of over $180,000 in the first place?

    • Paleoconn

      You mean $232,000. I agree. The guy would make $20 max, more likely closer to $14-16 which equates to $30k, maybe $40k if lots of overtime. Not nearly enough. Since when is it every person’s God-given human right to own a home?

      • Especially a quarter-million dollar McMansion. I’d normally expect a landscaping worker with a wife and two kids to be renting a double-wide in a trailer park.

        • Paleoconn

          The money we can save by bringing all the troops home can be used in part to line them all up along the southern border.

      • SFLBIB

        Since God crated the first democrat.

        • Paleoconn

          And neocons. Take a look at some of Bushlet’s speeches where he rails against the home ownership gap, ie. the few hispanics and blacks who own homes versus Whites.

    • LHathaway

      Maybe he owns the company?

    • Bill

      The only thing I can figure, is the guy’s wife works, too. Then there’s the houses with three or four adults living in it. You can tell by the massive amount of cars parked in front of them, or on the lawn.

      • WR_the_realist

        There are two things I learned when I lived in my previous diverse neighborhood, with a lot of Mexicans.

        1. Mexicans will have a lot of adults in each house, with cars (and trucks) parked on the lawn.

        2. Housing code enforcement is only applied to white people.

        • Some municipalities do get away with enforcement; they explain that those housing codes were written to keep university undergrads from packing a single-family house with students, and that seems to mollify folks when they’re also enforced against greaseritos.

    • mugg$

      Easy when you get to keep ALL the cash from pay, unlike us who get at least 27% in deductions out of our payroll before we get our hands on it. When Lupe is paid for cleaning the toilet, she gets 9$ an hour Cash unlike Bridgette, who actually receives about 5$ an hour after taxes.

    • SFLBIB

      Two words: Barney Frank. If you want it in one word: democrats.

    • IBWHITE

      I read where the banks were being leaned on by the feds to practically give a loan to any warm body that asked for one, especially minorities. Franklin Rains, black administrator over Freddie Mac and Fannie Mae, requested his pay be based on commission instead of a traditional salary that those prior to him had had – Rains later retired a multi-millionaire. After this was implemented they had members of ACORN storming into bank boardroom meetings demanding that more minorities be approved for housing loans. The feds then refused to allow many banks to merge or expand until they met their housing loan demands.
      When el-presidente, Jorge Bush, sent in investigators Barney Frank and Maxine Waters began screaming “Wacists! Wascists!” Of course this resulted in the Republicans retreating without even a whimper. It’s simply another “pigsgate” to fleece the White tax payer out of even more money. Look for the sequel “housing bubble II” coming to a theater near you soon.

  • dd121

    Six months to a year, the stock market comes way down preceding a Presidential election. Brace yourselves.

  • WR_the_realist

    Yanko Matias, a native of the Dominican Republic, wanted a house
    where he and his wife could raise their two young children. So they
    bought a single-family home in Lynn in 2007, taking out a loan for the
    entire purchase price of $232,000.

    But in early 2009, Matias lost his landscaping job.

    So a guy who mows lawns for a living (when I was a boy that sort of job was done by teenagers) buys a $232,000 house with no down payment. What could possibly go wrong?

    • Yancy Derringer

      So he didn’t “lose” his home – not having to put anything down on the house, the only at-risk funds he had in it was about 10% of the total amount of monthly mortgage payments he made (about 90% would have been interest) plus the value of any improvements he may have made.

    • NoMosqueHere

      Whites deserve some blame here. They fell in love with cheap labor. Every middle class white diva wants her own spanish clean up girl; and her husband would rather park his fat butt in front of the TV on sunday afternoons than do some lawn mowing.

      • Canadian Friend

        You are right, but feminism also played a big role, when women stayed home there was less of a need for a Spanish cleaning lady, and when households had only one income, there was less money to hire help.

        Also feminism has pretty much convinced women they deserve/are entitled to be treated like special little princesses, and princesses have people at their service.

  • SFLBIB

    ” It was the response to Black complaints that they were disproportionately turned down for loans…”

    Dr. Sowell shot that complaint down in flames. He observed that the black default rate was about the same as the white, illustrating that blacks were being evaluated the same as whites.