Home Ownership, Minorities, and Urban Areas: The American Dream Writ Local*

Abstract

This article focuses on home ownership changes since 1990, particularly by minority or low-income populations—known colloquially as the American dream. This longtime centerpiece of U.S. policy has been primarily viewed in terms of national outcomes. Here, we address differences in a spatial context, focusing on the forty-nine Metropolitan Statistical Areas (MSA/CMSAs) with greater than 1 million population in 2000. The central question is how ownership change differed among urban areas. Following the annual State of the Nation's Housing report, we spotlight the percentage point change (PPC) of home ownership by all, white, black, Hispanic, Asian, and minority (as-a-group) households—as these vary among urban areas for 1990–2000, 2000–2007, and 1990–2007. Statistically, we find that PPCs for each racial and ethnic group tend to move in tandem; that there are considerable differences among MSAs in PPC performance; that these differences tend to cluster spatially in a manner that reflects regional dynamics but that, overall, the goal of reducing the minority–white gap in home ownership has not been realized. Regarding specific variables, metropolitan growth and, to a lesser extent, MSA size, best account for change in home ownership; subprime lending is not significant. In addition, consideration of unexplained variance leads us to conclude that, as a complement to the approach taken here, a more qualitative strategy would significantly increase understanding of this important issue—a strategy that focuses on institutional structures, supply-side actors, advocacy groups, financial organizational practices, community procedures, and the like—with key informant interviews as a central component.