Homeownership

Widening Divides: Trends Exacerbated by the Pandemiccontinued

While the problems of housing and homelessness have long since passed the crisis point in the region, the pandemic escalated public consciousness of impending emergency. In a July 2021 statewide poll by Emerson College, Californians ranked homelessness as the number one issue facing the state and housing the second-most important issue.84 This statewide concern is reflected in local data. The 2021 homeless population in Santa Barbara County is projected to rise by nearly 300 to 2,195 individuals.85 The COVID-19 pandemic has also posed unique challenges for shelters in the region, as the communal indoor environments can lead to outbreaks, forcing shelters to reduce their capacity—and scores of people to seek refuge in outdoor camps.86

In interviews on the issue, local officials and advocates praised the COVID-related infusion of money from the state to support homeless services and relief during the pandemic, while expressing concern about the uncertainty of much-needed long-range funding commitments to deal with the underlying crisis. They also recognized the broader challenges associated with procuring or constructing new housing in response to the growing need, especially in the absence of long-term funding streams designated for affordable housing following the dissolution of redevelopment agencies (RDAs) by the state of California in 2012.87

Homeownership Meanwhile data on homeownership rates over time show persistent racial gaps in access to residential property ownership, and the associated wealth-building and economic security-enhancing opportunities it can bring. From 1980 through 2018, larger proportions of white than non-white populations have been homeowners in Santa Barbara County. Data from 2018 in Santa Barbara County show that while 62 percent of white households owned their homes, only 38 percent of Black, Indigenous and other people of color households lived in homes they owned. In Ventura County, about 70 percent of white households lived in homes they own compared with 53 percent of Black, Indigenous and other people of color households who own their homes.88 In addition in Santa Barbara County the proportion of white homeowners increased over the three decades, while among other racial groups it remained the same or decreased over time. In Ventura County, homeownership rates are highest among Asian Americans, however given the high variation in socioeconomic status within this racial group, further disaggregation is needed to understand the significance of these findings.89 The pandemic further illustrated and even accelerated these widening divides. Data on home sales in the region show that during the pandemic, while many worried about making rent, investors and those who could work remotely and had a stable income during this time were buying property and contributed to a booming housing market.90 Data on homeownership rates over time show persistent racial gaps in access to residential property ownership, and the associated wealth-building and economic securityenhancing opportunities it can bring.

Widening Divides: Trends Exacerbated by the Pandemiccontinued

FIGURE 45: HOMEOWNERSHIP BY RACE, SANTA BARBARA COUNTY, 1980 TO 2018 Homeownership by Race/Ethnicity, Santa Barbara County, CA, 1960-2018

1980 1990 2000 2018

60% 63%62%

56%

52%54%

51%50%

35%

31%31%

29% 41%

37%39%

36% 48%

40%

White Black Latinx

Source: ERI Analysis of 2018 American Community Survey Microdata from IPUMS USA. Note: Universe includes all occupied households. Data for 2018 reflect a 2014-2018 average. Asian Mixed/other

Widening Divides: Trends Exacerbated by the Pandemiccontinued

FIGURE 46: HOMEOWNERSHIP BY RACE, VENTURA COUNTY, 1980 TO 2018 Homeownership by Race/Ethnicity, Ventura County, CA, 1980-2018

1980 1990 2000 2018

70%71% 73% 70% 77% 76%

74% 74%

47%

50% 48%

43% 48%

52% 49% 48% 61%

50%

White Black Latinx

Source: ERI Analysis of 2018 American Community Survey Microdata from IPUMS USA. Note: Universe includes all occupied households. Data for 2018 reflect a 2014-2018 average. Asian Mixed/other

Widening Divides: Trends Exacerbated by the Pandemiccontinued

Racial disparities in homeownership—which have persisted, and in some instances widened over time— take on added significance when we recognize that residential homeownership is the single largest source of household wealth-building in the U.S., serving for many as an important source of long-range financial stability and opportunity, and of basic economic security in uncertain economic times. This is especially the case for non-white and mixed-race households, which are substantially less likely than their white counterparts to have access to inheritances or other sources of intergenerational wealth, or to be employed in jobs that provide access to retirement savings.91 While data on overall household wealth are not available at the county level, analysis of national level surveys point to the broader trends—toward increased concentration and rising, racialized inequality—that make wealth distribution a critical indicator of economic inequality and that have if anything been more pronounced and visible in our region in recent decades. According to the Federal Reserve’s Survey of Consumer Finances, in 2019, households in the top 10 percent of the overall distribution owned some 76 percent of total U.S. wealth, compared to the mere 1 percent owned by households in the bottom 50 percent. Among those in the bottom half, average wealth holdings amounted to $22,000, with a substantial portion of families holding $0 or negative wealth, meaning their liabilities exceed income and assets. In contrast, average wealth holdings among the top 10 percent come to $5.7 million.92

These and other surveys show wealth to be inequitably distributed by race and ethnicity as well, with white households on average possessing five times the wealth of Latinx households and nearly eight times the wealth of Black households. Moreover, the racial wealth gap persists across income and education levels, reflecting the legacy of historically racist policies and economic practices as well as enduring structural and institutional disparities in access to homeownership, higher education, and employment opportunities. As much as the gaping divide in income and wages, addressing wealth inequities will be critically important to achieving a future of genuinely shared prosperity in the region and nationwide.93 As much as the gaping divide in income and wages, addressing wealth inequities will be critically important to achieving a future of genuinely shared prosperity in the region and nationwide.