The U.S. Foreclosure Crisis and Racial Change in the American South

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The U.S. Foreclosure Crisis and Racial Change in the American South Clemson University TigerPrints All Dissertations Dissertations May 2019 The .SU . Foreclosure Crisis and Racial Change in the American South Jermaine Marquise Durham Clemson University, [email protected] Follow this and additional works at: https://tigerprints.clemson.edu/all_dissertations Recommended Citation Durham, Jermaine Marquise, "The .SU . Foreclosure Crisis and Racial Change in the American South" (2019). All Dissertations. 2393. https://tigerprints.clemson.edu/all_dissertations/2393 This Dissertation is brought to you for free and open access by the Dissertations at TigerPrints. It has been accepted for inclusion in All Dissertations by an authorized administrator of TigerPrints. For more information, please contact [email protected]. THE U.S. FORECLOSURE CRISIS AND RACIAL CHANGE IN THE AMERICAN SOUTH A Dissertation Presented to the Graduate School of Clemson University In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy Planning, Design and the Built Environment by Jermaine M. Durham May 2019 Accepted by: Dr. Mickey Lauria, Committee Chair Dr. James Spencer Dr. Jason Osborne Dr. Elora Raymond ABSTRACT Despite the global impacts of the U.S. foreclosure crisis, research on how this event has shaped processes of neighborhood change at the local level is relatively limited. Although the immediate neighborhood impacts of the U.S. foreclosure crisis have been well documented, the long-term influences this historic event had on processes of racial succession is yet to be fully understood. Even less research has focused on how the foreclosure crisis influenced racial transitions in small to mid-sized cities in the American South. Using both quantitative and geographical analytic techniques, this multi-case study seeks to analyze the spatial distribution of foreclosures in two counties in Southeastern United States. Additionally, using OLS regression, the study seeks to determine the independent influences that foreclosures have on the racial succession process at the census tract level. This research will to add to the discussion on race, foreclosure, neighborhood change and the reproduction of spatial inequality in America’s post-Recession urban landscape. The results can help planners, policy makers and housing advocates better understand the racial transition process and more effectively ameliorate issues that result from concentrated foreclosures. ii DEDICATION I dedicate this to my parents for all the love, support and guidance they have given me throughout my life. To my family and friends, whose encouragement helped strengthen my confidence in times when I doubted myself. And to my ancestors; whose strength, courage and perseverance made my life possible. It is my hope that their legacy will be carried forward through my work. iii ACKNOWLEDGMENTS I would like to thank Clemson University and the Planning, Design and the Built Environment program for the opportunity to pursue my dream. I also thank my dissertation committee for their guidance throughout this arduous journey. Their expertise in the field of urban planning and passion for research was both informative and inspirational. iv TABLE OF CONTENTS Page TITLE PAGE .................................................................................................................... i ABSTRACT ..................................................................................................................... ii DEDICATION ................................................................................................................ iii ACKNOWLEDGMENTS .............................................................................................. iv LIST OF TABLES ......................................................................................................... vii LIST OF FIGURES ......................................................................................................... x LIST OF MAPS .............................................................................................................. xi CHAPTER I. A CRISIS EMERGES.................................................................................... 1 Purpose & Significance............................................................................ 2 Research Questions .................................................................................. 4 II. UNDERSTANDING RACE, FORECLOSURE & NEIGHBORHOOD CHANGE ................................................................ 5 Understanding Race ................................................................................. 7 The Racialization of Space .................................................................... 14 Theories of Neighborhood Change ........................................................ 24 Theories of Racial Segregation .............................................................. 30 Gentrification ......................................................................................... 35 Mortgage Finance and the Foreclosure Crisis ....................................... 46 The Geography of the Foreclosure Crisis .............................................. 48 Deregulation, Financialization and Securitization ................................. 50 Subprime Lending .................................................................................. 58 Federal Responses Foreclosure Crisis ................................................... 67 Foreclosures and Neighborhood Change ............................................... 69 III. THEORETICAL FRAMEWORK ............................................................... 74 Philosophical Orientation....................................................................... 74 v Table of Contents (Continued) Page Theories of Causality ............................................................................. 76 IV. RESEARCH DESIGN & METHODS......................................................... 82 Purpose ................................................................................................... 82 Questions & Propositions ...................................................................... 83 Research Design..................................................................................... 85 Data Sources .......................................................................................... 88 Methods.................................................................................................. 91 Variables ................................................................................................ 94 Units of Analysis.................................................................................... 97 Methods for Research Question #1 ........................................................ 98 Methods for Research Question #2 ...................................................... 101 Case Description .................................................................................. 105 Geocoding & Hotspot Analysis ........................................................... 107 Threats to Validity ............................................................................... 108 Expected Findings ................................................................................ 113 V. GREENVILLE COUNTY CASE STUDY REPORT ............................... 115 General Information ............................................................................. 115 Brief History of Racial Segregation in Greenville County ............................................................................................. 117 Downtown Revitalization and Affordable Housing in Greenville County ....................................................................... 120 Foreclosure Process in Greenville County ........................................... 123 Population & Demographic Characteristics ......................................... 124 Black Population Change 2000-2015 .................................................. 130 Greenville Economic Characteristics ................................................... 135 Housing Value & Housing Age ........................................................... 138 Summary of Racial Change Greenville County................................... 141 Foreclosures and High Cost Lending Greenville County .............................................................................................. 147 Foreclosure & Racial Change in Greenville County (2000-2015) ......................................................................... 159 Limitations of the Greenville County Case Study ............................... 164 VI. MECKLENBURG COUNTY CASE STUDY REPORT.......................... 166 General Information ............................................................................. 166 vi Table of Contents (Continued) Page Brief History of Racial Segregation in Mecklenburg .......................... 168 Downtown Revitalization and Affordable Housing in Mecklenburg County .................................................................. 173 Foreclosure Process in Mecklenburg ................................................... 175 Population and Demographic Characteristics ...................................... 176 Black Population Change 2000-2015 .................................................. 180 Economic Characteristics in Mecklenburg County ............................. 182 Housing Value & Housing Age ........................................................... 185 Summary of Racial
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