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Black families especially feel effects, census data show. Group tries to fight trend
By Paula Schleis
and David Knox
Beacon Journal staff writers
Published on Tuesday, Sep 23, 2008
You might have assumed it, but the U.S. Census Bureau confirmed it Monday in cold and startling numbers.
The rate of homeownership is falling in the Akron area.
Black families are particularly hard hit.
According to the American Community Survey, 59.4 percent of homes in Akron were owner-occupied in 2007. That's almost 2 percentage points less than in 2000.
But among black homeowners, the rate fell much more — from nearly 46 percent in 2000 to 37 percent last year.
Grady Appleton, executive director of the East Akron Neighborhood Development Corp., said he's not surprised.
In 2005, the group surveyed properties in the predominantly black neighborhood and counted 443 vacant homes in a two-mile radius.
East Akron has become a powerful example of how the loss of homeownership has an impact on a neighborhood.
''When you have people losing homes, there's instability. Property values go down. You can't attract business in. Tax revenue is lost to the city, and there you lose support for other things, like schools and capital improvements,'' he said.
The drop in black homeownership was seen in urban areas across the state. Cuyahoga County posted the largest decline, from 48 percent in 2000 to 38.8 percent last year.
In fighting the trend, Appleton's development group has been building about 50 affordable housing units a year, some for purchase, some with a lease-to-buy option.
In 2006, the group's parent — the East Akron Community House — added to the effort by opening its Center for Home Ownership.
Housing counselor Toya Kelker said the program isn't as much about creating more homeowners as it is about creating more successful homeowners.
From learning how to compare loans to understanding hidden costs like moving expenses, ''we better prepare them so they're able to make sound decisions,'' Kelker said.
Dream crushed
Bonny Ann Bell said that kind of knowledge might have kept her from losing her home last month.
She remembers with pride being able to purchase her Boulevard Street house in South Akron in 1995. But she admits she didn't understand the terms, or why her payments kept climbing as her mortgage was sold to different companies.
After losing one of her two jobs and being set back by illness, she had difficulty keeping up payments. And when she was threatened with foreclosure, she said, she didn't know with whom to communicate or how to get out from under it.
A niece has taken her in, but she's crushed that for the first time, the mother of six isn't head of her own household.
''I only have a 10th-grade education but I'm no dummy. I'm 57 and I've made it this far,'' she said. Still, the numbers associated with the changing picture of her adjustable rate mortgage might as well have been falling out of a blue sky, she said.
Bell is far from alone. Summit County has suffered much in the recent housing market collapse, showing one of the highest foreclosure rates in the nation.
The crisis was largely caused by lenders helping people buy houses they could ill afford by offering easy initial terms.
Then in the last couple of years, when housing prices started to drop and those once-favorable adjustable-rate mortgages started to climb, people found themselves with homes that were worth less than what they owed.
The latest census report illuminates that story, showing that the median home value in Akron fell from $101,004 in 2005 to $94,100 last year.
Reversing the trend, especially in poorer neighborhoods, will be difficult. The recent tightening of lending guidelines will make it more difficult for low-income families to qualify for loans, Kelker said.
And Appleton added that one way to help people afford homes is to give them good job opportunities — another challenge in this soft economy.
Other data included
In addition to housing data, the report released today includes annual updates on hundreds of topics involving how Americans live, go to school, work and travel.
In overall educational attainment, Ohio ranked 38th among the 50 states in percent of residents, 25 and older, who had earned a bachelor's degree or more. While the state ranking was unchanged from 2006, the portion of Ohioans with a four-year degree grew from 23 percent to 24.1 percent in 2007.
The national average was 27.5 percent.
In the Akron-Canton area, Summit County reported the highest level of educational attainment, 29 percent with a bachelor's degree, followed by Medina County with 27.7 percent; Portage County, 24.3 percent; Stark County, 22.1 percent; and Wayne County, 22 percent.
The report included information about states, counties and cities with populations of 65,000 or more. Next month, the Census Bureau is to release the same kind of social, economic and educational data for cities, villages and townships with small populations — down to 20,000.
This will be the first time since the 2000 Census that data will be available for these communities.
Paula Schleis can be reached at 330-996-3741 or pschleis@thebeaconjournal.com.
David Knox can be reached at 330-996-3532 or dknox@thebeaconjournal.com.
You might have assumed it, but the U.S. Census Bureau confirmed it Monday in cold and startling numbers.
Get the full article here.
Comments
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Posted 02:07 AM, 09/23/2008
One of the problems here is that American ghetto culture still has disdain for education. Doing well academically is "acting white" or is considered an attempt to act like one is above one's peers. Many blacks (and ghetto whites & hispanics) reject formal education in order to preserve or enhance social status . This leaves them ill-equipped to deal with complex problems that require abstract thinking, like terrible mortgage offers.
akron, oh
Posted 04:45 AM, 09/23/2008
If you have a tenth grade education and dont understand what you are signing - then don't sign the papers. And dont come whining to the rest of us when youu lose your house.
Tallmadge, OH
Posted 07:18 AM, 09/23/2008
How many more boarded up houses have to be in Akron before people wake up and vote for Obama? 8 years of Bush policies have done this to us. 4 more of the same under McCain will not change anything except board up even more homes. It's time the for 95% of middle and low classes to get theirs, and the 5% who make over $250,000 to pay more of theirs. "It's the economy, stupid" for the 2008 election and nothing else really matters.
Akron, OH
Posted 07:18 AM, 09/23/2008
I'm white and own my home. Those two things have nothing to do with each other. The reason I own my home is because I'm a hard worker, I don't overspend, and I bought a house that I could afford. That isn't very complex at all. People who expect to get something for nothing are receiving a rude awakening of their own causing. Maybe they should be blaming themselves instead of the government or the "evil" banks.
Akron, Oh
Posted 07:39 AM, 09/23/2008
Lets see....Homeownership is declining...I know what will get people back buying houses...Lets put a tax on people who buy up the foreclosed houses. What a bunch of idiots.
AKRON, OH
Posted 07:49 AM, 09/23/2008
BARACKO IS GOING TO REDUCE THE BOARDED UP HOMES IN AKRON ? SOUNDS LIKE MORE ENTITLEMENTS RATHER THAN A PLAN. BILL OWNS HIS HOUSE AND, APPARENTLY, CONDUCTS HIS BUSINESS WITHIN HIS FINANCIAL CONFINES. SEEMS LIKE HANK UNDERSTANDS THE IMPORTANCE OF AN EDUCATION, AS DOES TIM. I BELIEVE THE FINANCIAL AFFAIRS OF THIS COUNTRY HAS MORE TO DO WITH THE ANTICS OF BIG BUSINESS THAN CURRENT LEADERSHIP. PERSONAL FINANCIAL AFFAIRS HAS EVERYTHING TO DO WITH THE INDIVIDUAL. EDUCATION IS AVAILABLE - ONE MUST POSSESS DESIRE.
Akron, OH
Posted 08:09 AM, 09/23/2008
Nice job ABJ. Somehow y'all have managed to include race in a subject that knows no barriers.
Posted 08:12 AM, 09/23/2008
Most homes are lost because people are not taught simple math and budgeting. This is needed to get the loan right for you and budgeting to keep your debts under control. Akron owes these forcloser to Akron public School system not teaching math. Or the lack of decipline to stay in school to get the correct skills to exist. This started when we made excuses for students bad behavior. This was done mostly by lowering the bar for education instead of bringing the students to the level needed.
Copley, OH
Posted 08:41 AM, 09/23/2008
Goshidiot wrote "How many more boarded up houses have to be in Akron before people wake up and vote for Obama? 8 years of Bush policies have done this to us. 4 more of the same under McCain will not change anything except board up even more homes. It's time the for 95% of middle and low classes to get theirs, and the 5% who make over $250,000 to pay more of theirs. "It's the economy, stupid" for the 2008 election and nothing else really matters." Uh...the problem was created by democrats who INSISTED "afforadable housing" be made available and backed by Fannie Mae and Freddie Mac. IF the problem were truly a Bush administration problem Pelosi and Reid would be caling for several committee hearings and investigations. Obama offers more of the same problems that created this housing mess.
Posted 08:47 AM, 09/23/2008
Time for a history lesson... Most of this housing mess started with Bill Clinton in office. This is when no money down and arm's bacame the norm. I recall Jessie Jackson & Al Sharpton backing this type of program so EVERYONE could buy a home.
Posted 09:12 AM, 09/23/2008
What about Billy Klinton's 1995 revisions to the "Community Reinvestment Act" that pandered to the ghetto? He said it would be a windfall for lenders like Countrywide. LOL!!!! That sure worked out well, huh?
Stow, OH
Posted 10:58 AM, 09/23/2008
Both parties are to blame for this one .Clinton was prez with a republican congress when that bill was passed.All you have to do is follow the money,yes low income people got to buy homes ,but the CEO's of these investment firms ,"like Lehman Brothers CEO who made $45 million in salary last year alone ! " they are the ones who made the killing .When you talk everyone into low interest loans and HELOC's and then raise the rates 18 times in a row ,this is the result.
Posted 11:02 AM, 09/23/2008
Why bailout the criminal predatory lenders.OMG
Akron, OH
Posted 11:34 AM, 09/23/2008
I understand the fact that some of these companies need to be bailed out so the market doesn't completely meltdown (Even though I feel they deserve to fail), but why does the Federal Government need to spend MY MONEY to buy up bad loans. The financial institutions came up with these programs that were doomed to fail in the long term, and I think they should have to suffer for those decisions. If they want to take out a loan from the Fed, then so be it, just get the same 11% rate as the AIG deal.
Akron, OH
Posted 11:48 AM, 09/23/2008
"The crisis was largely caused by lenders helping people buy houses they could ill afford by offering easy initial terms." Don't think that Obama is the answer. Obama needed INMATE Tony Rezko to get his $1.7 million stately home. Obama, too, bought beyond his means, and now, many want to give him the most deluxe "free" housing and expenses in Washington Living within one's means is a lost concept.
akron, oh
Posted 12:13 PM, 09/23/2008
While both parties are guilty in pandering to the poor and offering easier home ownership, the reality is that the meltdown occurred because PEOPLE took out loans they could not understand and could not afford. And then, rather than living within their means, they continued to spend recklessly. This is a personal responsiblity issue - no different than the teenager that gets knocked up and then runs to the government for assistance. If you can't afford it - don't get it.
Posted 12:35 PM, 09/23/2008
GoshAwful, Stop using this story as a launching pad for your political views. This story means something to Akronites and no one is in the mood for either side to pump their candidate. Ever hear the phrase that "all housing is local?" For the record, I am a Democrat voting for McCain, but I still think that as many people as possible should be enabled to purchase homes (and continue to pay for them). The strange thing is that many Democrats of late are the ones saying that they shouldn't because they're too busy pointing fingers over this whole financial mess. Let's focus and fix our problems instead of advancing out agendas. But something tells me you don't even live in the Akron area, so you don't care.
Posted 03:48 PM, 09/23/2008
It wouldnt have anything to do with most major coporations have left Akron, Roadway laid off almost 200 people last christmas, and yes, while they pandered to the low interest rate and the first time home buyers without having any education on the process or what happens, if the jobs were still around, most people would still be able to afford their homes. The goverement thought it would be a good idea to outsource our jobs to low paying countrys.
akron, oh
Posted 04:19 PM, 09/23/2008
"the government" doesn't outsource jobs. Companies decide to go elswhere because it is cheaper for them to do business there. Why do you think the stuff they sell at Walmart is so cheap? You can't have it both ways - expensive labor and cheap products.
Orrville, Oh
Posted 05:24 PM, 09/23/2008
Businesses refusing to comply with realities demands, they market the cost in the wholesale and retail price of their product and service. Of homeowners paying for The American Dream with money derived from wages or independent business profit. Pay state property tax on state appraised value. Pay Financial Institution interest on mortgage for 30 years. Pay for the more stock dividends (money) Foreign and Domestic investors and stockholders (money marketers) market quarterly in the wholesale and retail price of every product and service Human Beings use for life. This makes The American Dream and life UNAFFORDABLE.
Posted 09:48 PM, 09/23/2008
While everyone was out buying their houses that they couldn't afford, and their Escalades that they had to buy a J.D. Byrider, I was out buying a 84,000 fixer upper home, and keeping my paid off Chevy Cavalier. Guess who still owns his home, has equity in it, and has a large savings to boot? People are idiots. Trying to impress the next guy with what they bought on credit. LOL. How's the crappy apartment working out for you, now?
Posted 02:27 AM, 09/24/2008
For those of you remarking on "budget", "math", and "hard-working". Most people that have lost or are losing their homes in East Akron had a budget, are hard working, and know basic math. The East Akron, Goodyear Hgts. communities are one of the most close knit communities there are, and most of never cared what color we were. All of us worked one or two jobs, watched each others kids, exchanged peanut butter and eggs....ect...and paid our bills on time. However, we never counted on our gas bills going from $150 to $625 a month in winter, or the electric from $75 to $200 or more. Mine nor my husbands paychecks ever increased to cover the loses of the higher bills, in fact, they were reduced by increased medical insurance rates. So, we both add second jobs to our lives, our kids see less of us, and our savings had been dipped into. Next thing you know, both of us have suffered illness, been laid off our main positions,ect. And then our savings are gone, and finally our home is gone, filing Chapter 7. So, why you are comfortable now, remember one thing when you think of all us losing our homes for one reason or another; But for the Grace of God, go I. Circumstance can change in a minute.
m, m
Posted 09:49 AM, 09/24/2008
Don't forget, many of the homes in the Goodyear Heights area need updating. The cost of updating some of these homes would far exceed home value. (the brick ones with alot of windows and rounded doors) While the mayor pushes to revitalize the projects, homeowners feel the pinch when they take out a 2nd loan to fix up the property. How about lobbying for more cash for homeowners? Raise the income cap for free/reduced interest loans? And truly alot of banks are to blame. We purchashed our first home in Tallmadge from First National Bank. They gave us three loan amounts #1 go on vacations and have pizza on Fridays, #2 eat pizza once a month, or #3 work all the time. , We chose the fixer-upper for the least amount of money, and when I lost my job my husbands' income covered the loan with no problem. Too many homes today in the McMansions depend on the two-income house. Divorce or job loss of one spouse means financial disaster.
Posted 12:34 PM, 09/24/2008
The deregulation mentality of the Bush Administration and the McCain's of the world have directly contributed to this economic instability. Now they'd like to impose that upon the health care system? I don't trust big government and I don't trust big business. At least Obama has been touting his concern with the middle class for his whole life. In general, the Dems take better care of the middle class.
Copley, OH
Posted 02:57 PM, 09/24/2008
"The median home value in Akron fell from $101,004 in 2005 to $94,100 last year." Donofrio's appraisal of my house went up 5%. Why do we keep electing this guy? He is either corrupt or incompetent. The Summit County Prosecuter needs to investigate. At a minimum he should be charged with negligence.
