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The Wall Street Journal points out in this article that homeownership is tougher than ever. In most cities there is a short supply of housing, and higher interest rates. Incomes have remained fairly stagnant. The suburban areas of St. Louis fit this pattern. Written by Paul Dribin
I hate to ever agree with the Trump administration but here goes. They are in favor of limiting the homeownership tax deduction to $500,000 annually. This is a good start. This deduction mostly favors wealthier people. Furthermore research has shown it does not stimulate the purchase of housing but drives up the price. Another largely white upper middle class entitlement. Written by Paul Dribin
The St. Louis Post Dispatch published an interesting article yesterday about the disparity in homeownership between African Americans and whites. The gap in St. Louis is about 29% with white people owning more homes. This gap increased as a result of the 2008 recession.
Nothing in this story is surprising to me. Homeownership rates are a sign of economic well being; unfortunately African Americans are not as solid economically as whites for the same reason there are other gaps. St. Louis saw a bigger disparity arise out of the recession. This is also not surprising because due to racism, segregation, and similar factors African Americans are forced to live a more marginal existence in St. Louis. More inner city neighborhoods, where blacks disproportionately buy are more likely to see a loss of value in a recession, and slower increases in good times.
