The driving force in housing is going to shift dramatically in coming decades, from the Baby Boom generation to minorities and immigrants. Demographic projections indicate about 15 million new households in the United States in the next decade, and some 10 million of them will be minorities. Recent immigrants will likely account for 5 million of these new households, and many will be unfamiliar with U.S. banking and mortgage finance.
America will need 20 million additional homes, about 2 million a year. Today, total homeownership in the U.S. is 69 percent, the highest it's ever been (sometimes we forget to think about the positive while we're totally engrossed in solving tomorrow's issues). "Today, 76 percent of white non-Hispanic families own their homes, but only half of minority families are homeowners."
About 200,000 loans entered foreclosure proceedings during the third quarter of 2006. Based on our experience, about 60,000 of these families will ultimately lose their homes. If that rate continues, nearly a quarter-million families will lose their homes to foreclosure during the coming year. This is an issue we are quite concerned about.
Our gains in homeownership should be protected, but not at the cost of giving risky loans to those who can't fulfill them. Every buyer needs to understand the terms of the loan they are being given.
Long Beach, Demographics
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