Produced by: Paul Ong, Karna Wong, and Nicolas Zuniga
FORECLOSURES & LA NEIGHBORHOODS
Foreclosures by Average
Home Values
Number of Foreclosures per Thousand Owners
Did you know that Los Angeles County home sales prices
jumped 77% during the housing boom of 2002-2006?
Towards the end of the housing boom (2005-2007), there
were over 79,000 risky subprime loans in Los Angeles
County.
Between 2007-2012, Los Angeles County had
approximately 143,000 foreclosures.
Homeowners facing foreclosure struggled to make ends
meet due to income or job loss and were frustrated trying
to modify their mortgages and/or navigate through the
foreclosure process.
The following graphs show that disadvantaged and
minority neighborhoods were disproportionately more
affected by the foreclosure crisis.
UCLA Center for the Study of Inequality
UCLA Asian American Studies Center
40
The least affluent
neighborhoods, those
with the lowest average
home values, had the
highest foreclosure
rates, which peaked
in 2008
35
35
30
Foreclosures by Subprime Rates
38
Neighborhoods
targeted for predatory
lending (with the highest
subprime lending rate)
suffered the highest
foreclosure rates, which
peaked sharply
in 2008
Supported by Ford Foundation
Foreclosures by Minority*
Share of Homeowners
*Minority share is the proportion of homeowners who are African American and/or Latino
30
Los Angeles County
neighborhoods where
minorities are an
overwhelming majority
of homeowners had the
highest foreclosure
rates
25
20
15
10
5
0
2007
2008
2009
2010
2011
2012
Neighborhoods in the Lowest quartile had average home
values of $405k or lower
Neighborhoods in the Middle Half had average home
values from $406k to $614k
The quartile of neighborhoods with the Highest home
values had averages of $615k or higher
2007
$
$
$
2008
2009
2010
2011
2012
The quartile of neighborhoods with the Highest subprime
lending rates were 22% or more
Neighborhoods in the Middle Half had subprime lending rates
of 9% to 22%
The quartile of neighborhoods with the Lowest subprime
lending rates were 9% or lower
2007
2008
2009
2010
2011
2012
Minorities comprised more than 79% of homeowners in the quartile
of neighborhoods with the Highest minority presence
Neighborhoods in the Middle Half had a minority share of
homeowners between 79% to 16%
In the quartile of neighborhoods with the Lowest minority presence,
minorities were no more than 16% of homeowners
Produced by: Paul Ong, Karna Wong, and Nicolas Zuniga
FORECLOSURES & LA NEIGHBORHOODS
Foreclosures by Average
Home Values
Number of Foreclosures per Thousand Owners
Did you know that Los Angeles County home sales prices
jumped 77% during the housing boom of 2002-2006?
Towards the end of the housing boom (2005-2007), there
were over 79,000 risky subprime loans in Los Angeles
County.
Between 2007-2012, Los Angeles County had
approximately 143,000 foreclosures.
Homeowners facing foreclosure struggled to make ends
meet due to income or job loss and were frustrated trying
to modify their mortgages and/or navigate through the
foreclosure process.
The following graphs show that advantaged and
non-minority neighborhoods were disproportionately less
affected by the foreclosure crisis.
UCLA Center for the Study of Inequality
UCLA Asian American Studies Center
The most affluent
neighborhoods, with
the highest average home
values, had the lowest
foreclosure rates, which
moderately fluctuated
during the housing
crisis
40
35
30
Foreclosures by Subprime Rates
Neighborhoods
that had the best access
to traditional home loans
(with the lowest subprime
lending rates) had the lowest
foreclosure rates, which
peaked at a modest level
late in the crisis
Supported by Ford Foundation
Predominately
non-minority
neighborhoods had the
lowest foreclosure
rates, which modestly
peaked later
in 2011
Foreclosures by Minority*
Share of Homeowners
*Minority share is the proportion of homeowners who are African American and/or Latino
25
20
15
11
10
8
10
5
0
2007
2008
2009
2010
2011
2012
Neighborhoods in the Lowest quartile had average home
values of $405k or lower
Neighborhoods in the Middle Half had average home
values from $406k to $614k
The quartile of neighborhoods with the Highest home
values had averages of $615k or higher
2007
$
$
$
2008
2009
2010
2011
2012
The quartile of neighborhoods with the Highest subprime
lending rates were 22% or more
Neighborhoods in the Middle Half had subprime lending rates
of 9% to 22%
The quartile with the Lowest subprime lending rates were 9%
or lower
2007
2008
2009
2010
2011
2012
Minorities comprised more than 79% of homeowners in the quartile
of neighborhoods with the Highest minority presence
Neighborhoods in the Middle Half had a minority share of
homeowners between 79% to 16%
In the quartile of neighborhoods with the Lowest minority presence,
minorities make up no more than 16% of homeowners