The geography of foreclosure in Contra Costa County, California
AbstractAmericans of all races and income levels recognize homeownership as a quintessential part of the American dream. This belief, along with federal policy that encourages homeownership and increased access to credit, has contributed to a dramatic rise in the number of families that own their home, particularly among low-income and minority households. In addition, rising homeownership in the first part of this decade contributed substantially to neighborhood revitalization, and brought much needed investment into low- and moderate-income neighborhoods. The recent subprime meltdown and rising foreclosures, however, threaten these gains. In this study, I use 2007 foreclosure data from Contra Costa County, California, to examine how foreclosures are distributed across neighborhoods, and to identify the neighborhood characteristics that are associated with foreclosure. I find that foreclosures are directly associated with subprime lending and that both subprime lending and foreclosures are concentrated in neighborhoods with high proportions of minority residents, lower-income households, and less educated households. These results have important policy implications for mortgage lending regulations and housing policies moving forward.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of San Francisco in its series Community Development Investment Center Working Paper with number 2009-03.
Date of creation: 2009
Date of revision:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul S. Calem & Kevin Gillen & Susan Wachter, 2004.
"The Neighborhood Distribution of Subprime Mortgage Lending,"
The Journal of Real Estate Finance and Economics,
Springer, vol. 29(4), pages 393-410, December.
- Paul S. Calem & Kevin Gillen & Susan Wachter, . "The Neighborhood Distribution of Subprime Mortgage Lending," Zell/Lurie Center Working Papers 404, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
- Michael LaCour-Little, 2007. "Economic Factors Affecting Home Mortgage Disclosure Act Reporting," Journal of Real Estate Research, American Real Estate Society, vol. 29(4), pages 479-510.
- Chau Do & Irina Paley, 2007. "Explaining the Growth of Higher-Priced Loans in HMDA: A Decomposition Approach," Journal of Real Estate Research, American Real Estate Society, vol. 29(4), pages 441-478.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger).
If references are entirely missing, you can add them using this form.