A discussion on racial equity in housing and an inclusive economy
One in three households — nearly 100 million people across the U.S. — struggle with housing costs that jeopardize their financial security, according to the Aspen Institute. As one of the biggest determinants of financial and physical health, housing can influence a person’s access to education, health care and job opportunities, and has the ability to transform entire communities and strengthen the economy. And yet, while the notion of owning a home is firmly part of the American dream, structural barriers continue to prevent many people from being able to afford to buy or rent a safe place to live in economically thriving communities.
These financial barriers are experienced most often in our nation’s most underserved communities, which are disproportionately represented by Black and Latinx families. According to the Urban Institute, home ownership rates are 25 percent lower for Black and Latinx families, and according to Harvard University’s Joint Center for Housing Studies, nearly 55 percent of Black and Latinx renter households are cost burdened, spending nearly one-third to one-half of their income on rent. The populations most affected have also been disproportionately hit by COVID-19. Government, community and business leaders should work together to provide equitable access to secure safe and affordable homes in all communities.
In October, JPMorgan Chase announced a business commitment of $30 billion over the next five years to help reduce systemic racism and advance racial equity by helping to close the racial wealth divide and provide economic opportunity for Black and Latinx people in the U.S. The firm will provide loans, equity and direct funding to promote and expand affordable rental housing and homeownership for underserved communities, as well as support opportunities to improve financial health and access to credit and banking.
“Racial equity is at the forefront of JPMorgan Chase’s approach to serving our clients and communities,” says Alice Carr, head of community development banking with JPMorgan Chase. “Our firm continues to prioritize increasing access to affordable housing for underserved communities. The importance of these efforts has been further underscored by the pandemic and social protest, which is disproportionately affecting those who are Black and Latinx.”
Carr adds that through this commitment, JPMorgan Chase seeks to lead by example. “It's good business to invest in the communities where our employees and customers live and work,” she says. “There should be a joint effort across government, business and nonprofit industry players to come up with creative, collaborative solutions and invest substantial resources in solving these ongoing complex issues.”
Through the Business Roundtable Racial Equity and Justice Committee, JPMorgan Chase and some of the country’s largest employers have committed to doing just that. The initiative seeks to re-evaluate business practices and advance a private sector engagement and policy agenda that removes barriers and increases access to homeownership and to affordable housing for Black and Latinx households.
To get a deeper understanding of the affordable housing challenges facing Black and Latinx communities, what’s working and what’s at stake, we sat down with Carr and other experts in community development and affordable housing. Here’s what they said.
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