Los Angeles flunks on housing affordability for Latinos, shows new study by the Center for the Study of Los Angeles at LMU
LMU in the News
October 30, 2003
Soaring increases in home prices, a growing population, sluggish growth in household income, and a slow rate of home construction mean the average Latino family in L.A. is locked out of the American dream of homeownership, according to a new study by Loyola Marymount University in Los Angeles.
The findings from the Center for the Study of Los Angeles at LMU are part of "Latino Scorecard 2003, Grading the American Dream." The Center reviewed numerous housing factors in the Latino community as one of five parts of the Latino Scorecard. The other areas evaluated are health, education, economic development, and public safety. The Scorecard is a five-year project sponsored by the United Way of Greater Los Angeles.
"At the current time, the typical Latino family has little choice but to live in expensive and inadequate rental units," said Dr. Mara Marks, associate director of the Center. "If the 'American dream' is to remain viable for this region's largest demographic group, Los Angeles County needs more housing, as well as home loans that are cheaper and of higher quality." Marks co-authored the housing study with Dr. Fernando Guerra, director of the Center, and Matt Barreto, research fellow at the Center.
Nearly half of Los Angeles County's population, about 45 percent, is Latino, and the majority of children now born in California are Latino, meaning the Latino population will continue to increase in the coming years.
"As a result of current demographic trends, what impacts Latinos impacts all Angelenos," said Marks.
LMU researchers focused on four areas - accessibility, availability, affordability, and quality. The study provides grades in each area as a baseline; updated scorecards will be issued in 2005 and 2007 to explore the progress made in each area.
· At the current time, Latinos receive only 17 percent of new home loans, had higher rejection rates than whites, and were more likely to receive subprime loans.
· Latino homeownership stands at just 38% compared to 58% among whites, and only one new home is being built for every 30 Latinos who move to Los Angeles.
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· Meanwhile, home prices grew by 12 percent, up to $227,000 in 2001, but incomes grew only by 3 percent. The average Latino family spends almost half its income on housing.
· The Center's findings also indicated that compared to non-Latino families, Latino families tend to live in homes with less square footage, more people per room, and homes in poorer condition.
LMU researchers came up with the overall grade for Housing of "D" by combining the housing components reviewed, in which: Accessibility received a "C," Availability received a "D," Affordability received an "F," and Quality received a "C."
"The American dream of achieving a better life for one's self and one's family has inspired countless generations, with homeownership a critical part of that dream," said Marks.
If the American Dream is to remain viable for this region's largest demographic group, says the study, Latino household incomes in Los Angeles must increase (see Economic Scorecard), more houses must be constructed, regulatory and loan approval systems must be reformed, and housing codes must be enforced.
To accomplish this, said Marks, private, public, and non-profit sectors must work together to prioritize the housing issue, cooperate to balance the concerns of environmental groups and neighborhood activists with the pressing need for new housing development, ensure that inclusionary housing provisions also give developers by-right development rights and density bonuses, and step up enforcement of current regulations and housing/apartment codes without taking units off the market.
The full Housing portion of the Latino Scorecard can be found on the Center's website at http://www.lmu.edu/csla/. The full Scorecard report can be found on the United Way of Greater Los Angeles website at www.unitedwayla.org.