What Challenges Do Minorities Face?
- 74.5% of non-Hispanic White
- 47.1% of Black
- 49.7% of Hispanic
Why are these stats important?
If you own your home, you can pass on that asset or "wealth" to the next generation. This allows the next generation to allocate the monies they would have spent on housing to be put towards savings or paying for a college degree.
Race and Lending
Persistent high rates of loan denials and low rates of Black homeownership indicate that race can still be a factor in mortgage lending practices. Due to past racism and cumulative disadvantage, traditional measures of credit reputation, capacity, and collateral value used in mortgage underwriting models can perpetuate discriminatory lending practices against Black and Latinx households.
The Racial Wealth Gap
What is Generational Wealth?
The wealth generation gap in home ownership refers to the disparity in home ownership rates and the accumulation of home equity between different demographic groups, often based on factors such as race, ethnicity, and socioeconomic status. This gap has been a persistent issue in the United States and has been a source of social and economic inequality.
How Does Generational Wealth Impact Housing?
It is important to approach this topic with sensitivity and respect, recognizing the historical and systemic factors that have contributed to the wealth generation gap in home ownership. These factors include discriminatory lending practices, redlining, and unequal access to education and employment opportunities. As a result, certain groups, particularly communities of color and low-income households, have faced significant barriers to achieving home ownership and accumulating wealth through home equity.
The wealth generation gap in home ownership can have significant implications for individuals and communities, as home ownership is often a key component of long-term financial stability and wealth accumulation. Those who are unable to achieve home ownership or accumulate home equity may be at a disadvantage when it comes to building intergenerational wealth or weathering economic hardships.
How Can Yarlow Help?
Regular home maintenance offers several benefits, including preventing costly repairs, preserving the value of the property, maintaining a safe living environment, and ensuring optimal energy efficiency. By identifying and addressing small issues before they become larger problems, homeowners can save money in the long run and avoid the inconvenience and stress of unexpected repairs. Maintaining a well-cared-for home also enhances its curb appeal and makes it a more comfortable and enjoyable living space. Additionally, keeping up with maintenance can increase the lifespan of home systems and appliances, leading to greater sustainability and reduced waste.
In this example, homeowners can save an average of $2,000 - $3,000 by hiring a professional to perform sealing maintenance every 2 years in harsh climates like Minnesota. That's a substantial cost savings when you have limited savings.
Yarlow provides push-notification alerts to help educate homeowners about when and how to perform maintenance. Storing receipts allows for users to review the maintenance history on their home and budget for upcoming costs. These simple tools can make a big difference in the homeowning experience. Download the app today and see how Yarlow can help you.