Residential Patterns

Housing Trends and Patterns

The housing bubble refers to the economic impact of the rapid decline of the housing market. In 2006, the price index of homes began a decline that lasted until the end of 2010. The largest price drop in Case-Shiller home index history was reported on December 30, 2008. The cause for the collapse is convoluted but can be traced to factors such as deregulation, housing tax policy, a push for homeownership for all, the subprime housing market, and low interest rates.

Any fluctuation—or in this instance, collapse of the nation's housing bubble—can influence a recession and impact home values, mortgages, home builders, real estate, home supply retail outlets, and many financial stakeholders. In 2008, the federal government spent $900 billion to bail out institutions related to the collapse of the housing bubble. The government provided support to these institutions, specifically Fannie Mae and Freddie Mac, throughout 2012.

Across the country in all regions, homeownership declined in 2010. Although the recession and financial crisis had hit in 2008, the impact on the housing market became most apparent two years later. In 2010, 65 percent of Americans reported owning their own homes—the lowest recorded number ever.

Homeownership Among Minorities

Homeownership rates among minorities have remained somewhat stagnant over the past decade. In 2000, 46.3 percent of the black population owned homes, and in 2010, 45.4 percent did. The black population has held the lowest homeownership rate since 2005.

Forty-six percent of the Hispanic population owned homes in 2000, and 47.5 percent owned homes in 2010. A slightly higher percentage was seen among Asians and Pacific Islanders, who in 2000 had 52.8 percent of their population owning homes with an increase to 58.9 percent by 2010.

The white population remains the highest at 71 percent. Although homeownership decreased [Page 83]across the board in 2010, the housing crisis hit the black and Hispanic populations more so than the white population. The black community in particular saw homeownership levels drop to pre-1990s levels—the lowest in the past two decades.

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