Army Vet Fights for Minorities Who Seek Fairness in America's Housing Market
The American Housing Market is on fire. But for people of color, the dream of home ownership remains elusive as costs rise, discriminatory practices prevail, and communities do little to create affordable homes. Nick Saifan, CEO of the veteran-friendly company Vendaval, explains how local and national action is needed to give African Americans and Hispanics a fair chance at home ownership.
HUNTINGTON BEACH, Calif., June 28, 2021 /PRNewswire-PRWeb/ -- The dream of owning an affordable house in a decent location has faded for African Americans and Hispanics as housing costs skyrocket across the nation. U.S Census Bureau figures indicate that Blacks are the least likely minority group in America to own a home. Nearly 73 percent of white Americans own a home. Only 42 percent of African Americans own a home as 50 percent of Hispanics do the same.(1) As the housing gap widens, so does wealth inequity between whites and non-whites. "Minorities face an extra challenge with housing," says Nick Saifan, CEO of Vendaval Corp., a housing and community benefactor and developer. "Generally, minorities have lower salaries and that makes owning a home even harder."
The figures for African Americans are at their worst point since the 1960s, when open discrimination was legal.(2) The housing gap trend is troubling, especially as financial programs created during the COVID pandemic begin to dwindle. With less government support, more families—especially those of color—will face evictions, foreclosures, and the potentiality of homelessness. "Government support is coming to an end very soon, perhaps by June 30," Saifan warns. "This will lead to a huge downturn and there will be many people of color faced with eviction."
Wealth inequity between white Americans and people of color is not a new story. But the current unfairness in housing has exposed a deeply rooted problem that demands community and government action.
In 1990, white households owned 90.7% of household wealth in the United States, whereas Black households owned 3.8% and Hispanic households owned 2.1%. These numbers have changed little over the past 30 years, with white households now owning 85.5% of wealth in 2019, and Black households owning 4.2% and Hispanic households owning 3.1%. Most of the white wealth decline is due to other racial groups attaining a share of the wealth. The average net worth (assets minus liabilities) per capita among white Americans is roughly $437,000 per person, whereas this value is $105,000 among Black people and $53,000 among Hispanic people. Home ownership accounts for much of this disparity. (3)
Reasons for the Gap(4, 5, 6)
- Housing inequity in America is a long and ugly story that includes discriminatory lending practices that once forced minorities to buy in non-whites areas.
- Racist practices once used by real estate agents and lenders made it difficult for minorities to obtain the same loans given to whites. This often led to minorities paying much more for a loan than their white counterparts.
- Banking paperwork and underwriter scrutiny in the post 2008-crash era has made it harder for middle to lower income families to obtain loans.
- The pandemic hit minorities harder than whites. This led to higher rates of job loss, higher medical bills, lower credit scores and greater financial difficulties.
- A lack of affordable housing developments has taken many options off the table for people of color.
A lack of affordable home inventory may push many African Americans and Hispanics into the streets. With no government support, families on edge by lack of work during the pandemic, may face evictions and foreclosures. Some may simply walk away from their homes only to face sky-high rents. Reports suggest the affordable housing crunch was bad before COVID-19. Now it's a true crisis, as families spend between 30 and 50 percent of household income to put a roof over their heads. (7)The same report found that 75 percent of poor renter households, those earning less than $15,000 annually, spend half their money on housing.
Advice for Potential Minority Homeowners
Saifan, who has decades of experience as an affordable housing developer and advocate for veterans and minorities, has some sound advice for those seeking affordable homes. "Anybody who wants to own a home, needs to save a little money,' he said. "Sometimes you may need to move into a place that needs repairs."
According to Saifan, homeownership has continued to lag for people of color compared to whites. The road ahead may get much worse unless communities and governments get serious and create more affordable homes, not just for minorities, but for all who seek a decent place to raise a family.
"Don't just go into one of the huge banks for a home loan," Saifan said. "Nobody's going to help you. They want to make their money and they're making their money. Work with a very small bank, either a community bank or a credit union. Credit unions are always the best. And then start asking questions."
About Vendaval Corporation
Nick Saifan served in the U.S. military for 24 years, including time stationed in Riverside County, CA. He experienced firsthand the difficulties of transitioning from military life to civilian life and, as a co-founder of a community-based nonprofit, he watched the difficulty in getting donations increasing year by year. Today, he's putting his business savvy where his heart is. He sees a community that, like many, has struggled to evolve with a changing employment picture in the region. Today Vendaval Corporation visualizes a sustainable business structure creating the opportunity for helping those in need with successful community-based programs. The differentiator in the communities he visualizes is self-sufficient affordable housing in a mixed-use development that offers on-site programs for veterans, youth, education, childcare, on-the-job training, and job placement. These programs begin even before ground is broken. Rounding out the community are retail outlets such as bakeries/coffee shops, dry cleaning shops, a paid-membership fitness center, and financial institution. For more information visit http://www.vendavalcorp.com/
1. USA Facts; "Homeownership rates show that Black Americans are currently the least likely group to own homes"; Last updated 16 October 2020; USA Facts; usafacts.org/articles/homeownership-rates-by-race/ | Accessed 23 June 2021
2. Conley, Courtney; "Why the homeownership gap between White and Black Americans is larger today than it was over 50 years ago"; 21 August 2020; CNBC; cnbc.com/2020/08/21/why-the-homeownership-gap-between-white-and-black-americans-is-larger-today-than-it-was-over-50-years-ago.html
3. USA Facts, "White People Own 86% of Wealth and Make up 60% of the Population," Last updated 23 September 2020; USA Facts; usafacts.org/articles/white-people-own-86-wealth-despite-making-60-population/ | Accessed 21 June 2021
4. Williams, Dima; "A Look at Housing Inequality and Racism in the U.S."; 03 June 2020; Forbes; forbes.com/sites/dimawilliams/2020/06/03/in-light-of-george-floyd-protests-a-look-at-housing-inequality/?sh=aaf2ab39ef06
5. Greene, Solomon; McCargo, Alanna; "New Data Suggests COVID-19 is Widening Housing Disparities by Race and Income"; 29 May 2020; Urban Institute; urban.org/urban-wire/new-data-suggest-covid-19-widening-housing-disparities-race-and-income
6. Zonta, Michela; "Racial Disparities in Home Appreciation"; 15 July 2019; Centers for American Progress; americanprogress.org/issues/economy/reports/2019/07/15/469838/racial-disparities-home-appreciation/
7. Knight, Kalimah; "The Lack of Affordable Housing is Getting Worse in The United States," 3 June 2020. Phys.com; phys.org/news/2020-06-lack-housing-worse.html
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SOURCE Vendaval Corporation
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