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Although the media continues to echo the Obama administrations talking points that the nation has experienced a housing recovery, a recent report released by the Federal Reserve shows that between 2010 and 2013 the median home value has fallen 7 percent (when adjusted for inflation). The Economic Policy Institute looked at the FED’s report and found African-Americans have suffered the largest drop in value.

A closer look at the unemployment rate sheds light on the reason why.

This 7 percent decline in the inflation-adjusted median home value breaks out into a 4 percent decline for both non-Hispanic whites and nonwhites (including Hispanics). But public data from the Survey of Consumer Finances—which provide more detailed race categories—show even starker differences among racial and ethnic groups. Between 2010 and 2013, inflation-adjusted median home values fell by 4.6 percent for white households and 18.4 percent for African American households, but increased by 3.7 percent for Hispanic households. Since respondents reported their highest home values in the 2007 survey, the median value reported by whites has declined 20.3 percent, compared to 37.7 percent for African Americans and 25.8 percent for Latinos.

 

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The disparity in home value mirrors the numbers of unemployment. The numbers show that between 2008 and 2010, the unemployment rate for whites across the United States was 8.1%. For Hispanics, the rate was 11.3%. For Blacks during the same time period, the rate was 15.9%.

A journalist for a statistics magazine looked at the link between home value and unemployment in Ireland. He found that when unemployment was low, housing values were high. When unemployment was high, the housing values dropped. David Blitzer of HousingViews found the same link in the US when he looked at data from 2011.

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Although other factors come into play, the housing values in black communities are low and the unemployment high.

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