Skip to main content

Zillow: COVID-19 Layoffs Threaten Housing Security For Minorities

Navi Persaud
Apr 27, 2020
People of different races having a discussion. Credit: iStock.com/funky-data

Massive number of job losses in the food, arts and retail industry.

New analysis from Zillow shows that the massive number of job losses in the food, arts and retail industry are going to cause Latin, Asian and African-American households to feel more of an impact on their housing security. The report claimed that 8.3% of White workers are employed among those three job categories, in comparison to the 12.7% of Latin workers, 10.2% of Asian workers and 10.1% of African-American workers.
 
"If these workers were to go without income for two months, only White households would stay within the affordability guideline at 29.4%—Black households would jump to 33.2% of income spent on rent, Latinx households to 34.8% and Asian households to 35.7%," according to the Zillow report. "In a more severe scenario where workers would go four months without pay, that would rise to 35.3% for White households and at least 40% for non-White households."
 
Relief provided from the CARES Act would reduce rent burden for White households by 19%, compared to Asian households, which would have their burden reduced by 22.8%. 
 
"This analysis highlights the financial tightrope many households walk in our vital service industries," said Skylar Olsen, senior principal economist at Zillow. "While it's encouraging that many who receive government assistance appear to be on solid footing for a few months, it's important to remember that some workers will see labor disruptions, such as a loss of hours, that don't qualify them for these unemployment benefits that are so crucial right now. And if the pandemic were to last beyond the summer, it could have lasting impacts that push many more into housing insecurity." 
 
Click here to view a full copy of Zillow's report. 
Published
Apr 27, 2020
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021
SRE Mortgage Alliance 'Restructuring & Reorganizing'

Owner of technology-based wholesale residential mortgage lender in El Segundo to determine organization's future.

Wholesale
Oct 15, 2021
Ginnie Mae Issued Record MBS Volume In FY2021

The record $939 billion issued included nearly $73 billion in September.

Industry News
Oct 14, 2021
UWM Completes Test Of Cryptocurrency Mortgage Payments

United Wholesale Mortgage evaluated and accepted the first-ever cryptocurrency mortgage payment in September and an additional five payments in October from borrowers.

Industry News
Oct 14, 2021
Arvielo Re-Appointed To HUD Advisory Committee

Nationwide mortgage lender New American Funding’s Co-Founder and President Patty Arvielo has been re-appointed to serve on the U.S. Department of Housing & Urban Development's Housing Counseling Federal Advisory Committee.

Industry News
Oct 13, 2021