BANKING & COMMUNITY FEDERAL RESERVE BANK OF DALLAS

PerspectivesSECOND QUARTER 1998

Affordable Parade of Homes Marketing a Dream

The Aguilars, David and Brenda (left), stand in front of their Villas de Esperanza home, which was Brenda Aguilar knew from the moment want my own room, like my friends,” featured in San Antonio’s second she walked into the house in Villas de Jennifer pleaded. That was the turning Affordable Parade of Homes. Also shown are Tim Hathaway, Esperanza in February 1997 that it would point, Rios says. And on March 7, 1997, director of the San Antonio be her home. The house was one of 24 the Aguilars closed on the three- Housing Trust Foundation, and custom homes built for the second bedroom, two-bath house and began Berta De La Garza and Deborah Boyer of Frost National Bank. Affordable Parade of Homes—a new take making it their home. on a successful marketing tool that San A year later, when Rios visited the Antonio is using to revitalize its inner city. Aguilars, she found the family happily Yolie Rios, program director of the settled. Brenda had hung curtains and San Antonio Housing Trust Foundation, a added personal touches. The girls, who nonprofit that helps create affordable had posted their names on the doors of housing, met with the Aguilars. “Brenda their rooms, had decorated to reflect INSIDE was really excited,” Rios recalls. “But their individual personalities. David, who David was apprehensive about buying a was very happy with his decision to home.” The foundation qualified buyers become a homeowner, was planning to Fed Board Requests for Villas de Esperanza, so Rios fence his yard with money from his Comment on Regulations explained the special financing available income tax refund. • to first-time home buyers. However, Although both Brenda and David The Economics of Home David was concerned that buying the have stable work histories and hold full- Ownership • house would interfere with his plans to time jobs, they, like many other hard- TSU Prepares Community send his two daughters to college. working families, felt they did not earn Development Professionals Both Jennifer and Cathy promised enough to purchase a home. To address • they would work nights and weekends this problem, a cross-section of nonprof- IDAs Spur Savings to save for college if they had to. “I just Continued on page 2 PUBLIC & PRIVATE PARTNERSHIP

Affordable Continued from page 1 formed almost 11 acres of inner-city ate-income applicants. The Frost program property into a $3 million development reduced the required down payment and its, builders, lenders and government that generates approximately $90,000 in placed no restrictions on using second agencies developed a program that is annual tax revenues. mortgages to raise the money. “Our pro- making home ownership possible for Louis Hull, John and Oran gram provides considerable flexibility in many low- and moderate-income fami- Kirkpatrick and the Oscar Elizondo family qualifying applicants,” explains Boyer. lies. This public/private partnership donated the land for Villas de Esperanza “However, this program makes many of includes several area banks, the Greater to the city. Using HUD block grants, the these loans ineligible for resale to the San Antonio Builders Association, the city corrected drainage problems, platted secondary market; therefore they remain San Antonio Housing Trust Foundation, the site and constructed streets before in our portfolio.” the San Antonio Development Agency, transferring 52 lots to the San Antonio The San Antonio Housing Trust the city, not-for-profit and for-profit Housing Trust Investment Corp., which Foundation, headed by Tim Hathaway, builders, the U.S. Department of Housing handles real estate for the foundation. offered 3.5 percent, 30-year second mort- and Urban Development (HUD), and The corporation then sold lots to gages of $10,000 to first-time buyers with the San Antonio Mortgage Bankers builders for $3,000 each. The proceeds annual earnings below 120 percent of Association. of the sale will be used as seed money the area’s adjusted median income. Home parades have been used in for future parades. Making the special financing package San Antonio to promote higher end Local lending institutions provided available to middle-income as well as developments for 30 years, but using one both interim financing to builders and low- and moderate-income buyers to promote affordable housing was a special mortgage programs for buyers. helped attract a diverse economic mix to new idea. In 1995 then city council “To encourage builders to participate, the neighborhood. member Ruth Jones McClendon, now a Frost Bank’s interim financing for Villas de Building houses within the $48,000 state representative, and John Salmons, Esperanza carried a very attractive interest to $68,000 price range demanded creativ- president of the home builders associa- rate, and we waived the typical commit- ity and ingenuity from the designers. In tion, promoted the idea as a way to help ment fee,” says Deborah Boyer, assistant Villas de Esperanza, built-in recessed the city provide more affordable housing. vice president in the Community shelving, pass-through bars, under-stairs The result has been three Affordable Reinvestment Department at Frost storage and multifunction areas helped Parade of Homes developments. National Bank. Twelve local builders, make the best use of the average 1,100 All three parades have been highly both for-profit and nonprofit, built 24 square feet in the homes. Vaulted ceil- successful. Villas de Esperanza, devel- houses for the parade. ings, bay windows and 10-foot ceilings oped for the second parade in February Like the other major lenders for the added volume and light. 1997, offers a good example of how the parade of homes, Frost used more flexi- Buyers found some surprising fea- process works. Villas de Esperanza— ble underwriting guidelines on Villas de tures in Villas de Esperanza homes, such Spanish for “houses of hope”—trans- Esperanza mortgages for low- to moder- as a separate shower and tub in the mas- ter bath, a step-up dining area with arched entry and crown molding—all normally found in larger, more expensive homes. The homes were not only affordably priced; they were designed with an eye toward affordable maintenance. Specifica- tions included low-flow toilets and water- saving showerheads, double-pane win- dows, high-efficiency insulation and energy-saving appliances. Elevated slabs that tilt and move with the area’s shifting

Through a special financing package, Brenda and David Aguilar were able to buy the home they had dreamed of owning but had never thought they could afford. Builder Fred Elsner (right) points out some of the special features he included in the Aguilars’ home. Fast Facts importance of public/private partnerships in creating and marketing affordable Villas de Esperanza, built for the February 1997 Affordable Parade of Homes sponsored by the housing. No single entity could have Greater San Antonio Builders Association, turned 11 acres of vacant land into a subdivision of 52 developed these affordable-home subdi- moderately priced homes. Now worth $3 million, the property generates about $90,000 in annual tax visions on its own, says Hathaway. The revenues. San Antonio used HUD block grants totaling $926,000 to correct drainage, plat the site and risk of acquiring land and providing an construct streets. The city transferred the lots to the San Antonio Housing Trust Investment Corp., infrastructure in a depressed area without which sold them to builders for $3,000 each. Brenda and David Aguilar purchased their three-bed- the intervention of the city and the use room, two-bath home during the parade for $65,900. of block grants would have prohibited an individual builder from undertaking Property: Single-family home in Villas de Esperanza the project. Lenders would have been reluctant to finance such a project, and, Builder: Fred Elsner of Franklin Homes with limited funds, not-for-profits could not afford to underwrite all the costs. Interim Construction Loan to Builder “But with all of us contributing Frost National Bank $50,000 resources to develop an ingenious idea, San Antonio created a new tool for revi- First Mortgage to Aquilar Family (30-year fixed) talizing inner-city neighborhoods,” Frost National Bank $58,100 Hathaway concludes. ◗

Second Lien Mortgage to Aquilar Family San Antonio Housing Trust Foundation $10,000 (Financing for down payment and closing costs Did You Know. . .? at 3.5 percent interest for 30 years)

For more information: San Antonio Housing Trust Foundation Inc. Fed Board Requests (210) 225-4761 Comment on Regulations

The Federal Reserve Board has requested comment on a comprehen- soils help prevent drywall cracks and Porches, set-back garages and paint sive review of two of its consumer pro- structural damage. Some builders used schemes reminiscent of yesteryear ensure tection regulations: Regulation B, Equal fiber-cement siding that is fire/termite/ the new construction fits comfortably Credit Opportunity, and Regulation C, decay-resistant and guaranteed for 50 among the existing residences. The Home Mortgage Disclosure. Under the years. houses are a little bigger than those in Board’s Regulatory Planning and Review All 24 of the spec houses built for the previous parades—up to 1,655 square Program, the review will seek to clarify, Villas de Esperanza parade sold within feet and including some two-story struc- simplify and update both regulations as three weeks of the event, and builders tures—and priced from $49,950 to well as reduce regulatory burden. The signed contracts for homes on the 28 $69,900. Board must receive comments by remaining lots over the next two months. The National Association of Home May 29. Building on the success of the first Builders met in San Antonio during the To gather information necessary for two affordable parades, the September week of the Historic Gardens parade, this review and ensure the participation 1997 parade attracted 16 builders. The and many of the visiting builders toured of interested parties, the Board is solicit- development, called Historic Gardens, is the homes. Inspired by what they saw, ing comment on several specific issues, the first of a four-phase project to revital- builders from dozens of cities have while also soliciting comment generally ize an area just east of downtown. requested information on the San on potential revisions to the regulations. Designs for the 21 homes had to meet Antonio program. Las Cruces, New Additional information is available strict specifications to keep new con- Mexico, is currently developing an from Notice 98-32. Please contact the struction in character with the 1940s style affordable homes parade of its own. Public Affairs Department at 800-333- of the surrounding neighborhood. The affordable parades illustrate the 4460, ext. 5254 for a copy of the notice.

FEDERAL RESERVE BANK OF DALLAS • PERSPECTIVES • SECOND QUARTER 1998 3 The Economics of Home Ownership Emerging Markets of the Next Millennium James H. Carr, Senior Vice President, Fannie Mae Foundation

Home ownership is vitally important four-family housing is roughly double home-ownership attainment contribute to to the economic health of the nation and the combined value of commercial paper large interethnic wealth disparities. its households. At the national level, the and consumer credit. In addition, mort- According to the Survey of Income and housing industry generates millions of gage debt on single-family housing Program Participation (SIPP), the median jobs and is a significant contributor to accounts for the bulk of all outstanding net worth of African-American and economic growth. At the household long-term mortgage debt. Hispanic households was less than level, home ownership is the principal Home ownership is also important $5,000 in 1993, barely one-tenth that of vehicle for wealth accumulation and to the economic situation of individual non-Hispanic white households. affords significant tax benefits for many households. Primary residences and asso- Many factors contribute to these dif- homeowners. ciated land are worth $7.2 trillion. After fering home-ownership rates across racial The household-level economic bene- subtracting mortgage debt outstanding, and ethnic groups. Lower household fits of home ownership are not shared net equity in these assets amounts to incomes make home-ownership afford- equally across different racial and ethnic $4.6 trillion. Equity in a principal resi- ability a substantial challenge for racial groups, however. Persistent disparities in dence is the primary source of wealth for and ethnic minorities. The differences in home-ownership attainment contribute to most Americans, accounting for 44 per- household net worth are also a factor. overall economic inequality and con- cent of total measured household net They are affected by differential access to strain the potential economic benefits of worth in 1993. home ownership and represent a signifi- home ownership to the nation. Remov- Beyond wealth accumulation, home cant financial obstacle to home owner- ing these disparities will become increas- ownership offers substantial tax benefits ship for minority groups. Discrimination ingly important as growth in minority for many households. According to esti- demand for housing accelerates in the mates from the U.S. Congress Joint future. Committee on Taxation, homeowners Figure 1 will be the beneficiaries of an estimated Home-Ownership Rates by Race and Economic Benefits of Home Ownership $67 billion in federal income tax deduc- Hispanic Origin (3Q 1997) Nationally, residential construction tions on owner-occupied housing in fis- directly employs about 3 million work- cal year 1998. Home-ownership rate (percent) 80 ers, and related industries employ another 3 million. Residential construction and Disparities in Home Ownership 70 investment, when combined with hous- The benefits of home ownership are 60 ing sales and housing-related expendi- not distributed equally across the popula- 50 tures, account for about 20 percent of tion. In the third quarter of 1997, when 40 gross domestic product. the national home-ownership rate 30 In addition to the employment and reached an all-time high of 66 percent, 20 expenditures generated by single-family the home-ownership rates of African- 10 housing construction, home financing is American and Hispanic households were 0 a major factor in the national economy. only 45 percent and 43 percent, respec- All White White, Black Other Hispanic households non-Hispanic races Mortgage debt outstanding on one- to tively (Figure 1). These differences in Source: U.S. Bureau of the Census, Current Population Survey/Housing Vacancy Survey. White, black and other race categories include persons of 4 FEDERAL RESERVE BANK OF DALLAS • PERSPECTIVES • SECOND QUARTER 1998 Hispanic origin, who may be of any race. in the housing and mortgage markets holds and homeowners will become and 2010, compared with an increase of also contributes to these differences. For increasingly important to U.S. housing 1.4 million in the preceding 15 years. Hispanic households, a high proportion markets. For example, the Census of recent immigrants who have not yet Bureau projects Hispanic households will Challenges in Reaching Emerging Markets adapted to U.S. housing and labor mar- increase by nearly 4.5 million between Minority and immigrant households kets also contributes to lower home- 1995 and 2010 and may account for face barriers to home ownership related ownership rates. almost 30 percent of total household to low economic resources (income and Desire for home ownership does not growth during the period. Asian and assets), discrimination in the housing and appear to be a factor in home-ownership Pacific Islanders, who currently represent mortgage markets, and lack of prepared- rate disparities between groups. In fact, only about 3 percent of all households, ness for home ownership. The last cate- higher proportions of African-Americans are projected to account for almost 11 gory can include limited understanding (74 percent) and Hispanics (63 percent) percent of household growth between of the home-buying process, nontradi- than whites (58 percent) say they would 1995 and 2010. tional methods of saving, absent or be willing to take a second job to pay Recent surveys demonstrate the blemished credit histories, and language for a home. importance of minority home buyers, barriers that complicate navigation of the particularly in the first-time buyer market. home-buying process. Among certain Importance of Equalizing Access In 1997, 28.4 percent of recent first-time recent immigrant groups, distinctive pref- to Home Ownership home buyers were minorities in the 20 erences for housing types and a lack of Why are the observed disparities in urban housing markets covered by comfort with debt and the U.S. housing home ownership so important to the Chicago Title and Trust’s survey of recent finance system also create obstacles to housing industry? Aside from concerns home buyers. Minorities accounted for home ownership. on the grounds of equity, these differ- 17.8 percent of repeat home buyers in These barriers do not uniformly ences represent substantial missed busi- the Chicago Title survey. affect all of the diverse households that ness opportunities. Harvard’s Joint Center The nation’s rapidly growing foreign- constitute the emerging markets for for Housing Studies estimates that there born population is an important factor in home ownership. Recognizing the dis- would have been an additional 1.8 mil- the growing minority demand for hous- tinct needs and preferences of the indi- lion homeowners in the nation’s 40 ing. Total immigration to the United vidual consumer is essential to largest metropolitan areas in 1990 if the States this decade is likely to reach expanding home-ownership opportuni- home-ownership rates of immigrants and approximately 11 million, more than any ties and creating new business opportu- native-born African-Americans and other decade in the nation’s history. Over nities. For consumers who are Hispanics were equal to the home- three-quarters of these newcomers will economically constrained, affordable ownership rates of native-born non- be racial or ethnic minorities. mortgage products that have higher Hispanic whites with similar demograph- A study commissioned by the Fannie ratios or lower down payments may ic and income characteristics. This Mae Foundation documents the increas- bring home ownership within reach. For estimate represents an increase of about ing importance of immigrants to housing those with no formal credit record or 7 percent over the actual number of demand growth. That work projected credit blemishes, underwriting flexibility homeowners in these markets in 1990. immigrant households to increase by 3.6 or credit counseling might be appropri- At the national level, simulations million between 1995 and 2010, account- ate. For those who are unfamiliar with conducted by the U.S. Department of ing for more than one-fifth of total the U.S. home-buying process and are Housing and Urban Development sug- household growth. This is up from an not adept in English, providing consumer gest that eliminating home-ownership increase of about 3.1 million immigrant education in native languages is a useful rate differentials between minorities and households between 1980 and 1995. strategy. For all minority consumers, vigi- whites of the same household type and The increasing importance of immi- lant adherence to fair housing, fair lend- income would increase the national grants will be particularly evident in the ing and community reinvestment laws is home-ownership rate by the year 2000 home-ownership market as many of the essential to expanding home-ownership by about 4 percent—representing almost immigrants who arrived in the late 1980s opportunities. 4 million homeowners. and early 1990s make the transition from Sensitivity to the diversity of home Disparities in home-ownership rates renter to owner. The number of immi- ownership’s emerging markets is particu- are also a major concern because demo- grant homeowners is projected to larly important in light of rapid techno- graphic trends indicate minority house- increase by 2.2 million between 1995 Continued on page 8

FEDERAL RESERVE BANK OF DALLAS • PERSPECTIVES • SECOND QUARTER 1998 5 for both community and economic development,” Eckel continues. “This includes building and rehabilitating TSU affordable housing, land assembly, new business and commercial development.” Prepares Community Classes will cover the legislative process, urban sociology, finance, organi- Development Professionals zational management, conflict resolution and negotiation, marketing and public relations. Students gain practical experi- ence in the day-to-day realities of com- Like other cities, Houston is experi- instruction and practical experience. munity development through an encing a surge in urban renewal, with TSU’s partners in creating the program internship with a nonprofit organization, more community organizations than ever are the TSU/Third Ward CDC—a com- government agency or financial institu- eager to become involved in the process. munity development corporation created tion involved in community develop- Many community-based organizations through TSU—and the Fannie Mae ment. Interns placed with financial originate with residents determined to Foundation. institutions will learn about financing. revitalize their neighborhoods. “And TSU and the TSU/Third Ward CDC Those working with nonprofits and CDCs because of the growth in local neighbor- developed the curriculum, and Eckel is will gain experience in marketing and hood revitalization,” says Roslyn Eckel, setting up the internship program. A development, and those placed with the executive director of Texas Southern Fannie Mae Foundation grant will help city or county will be exposed to public University/Third Ward Community pay a stipend for the interns. Rodney E. policy and administrative procedure for Development Corp. (TSU/Third Ward Moton, a third-year student at TSU’s community development initiatives. CDC), “finding experienced managers to Thurgood Marshall School of Law and an Interns will work a maximum of 20 direct the efforts of these groups is a intern at the CDC, is helping Eckel set hours per week for six to nine months. challenge.” guidelines for the internship program. Organizations will be asked to pay their Texas Southern University, in collab- “He is also helping me to see what intern’s monthly stipend. However, for oration with public and private partners, types of activities will and will not work smaller nonprofits that cannot afford to has accepted that challenge. Beginning for the program,” explains Eckel, “and pay the whole amount, the CDC will with the fall 1998 semester, students can determine the types of reports we will fund part or all of the stipend from the choose an undergraduate minor or grad- need from the organizations with which Fannie Mae Foundation grant. Long term, uate-level concentration in community the interns are placed.” Felicia Jackson, Eckel hopes to place 20 interns a year. development through TSU’s new the program coordinator, will organize “Our goal with the internship is to Community Development Leadership students’ work and academic schedules. provide students with experiences in all and Internship Program. The new cur- “The Community Development aspects of community development,” riculum prepares students for revitalizing Leadership and Internship Program will Eckel explains. communities through both classroom emphasize developing leadership skills Faculty members, community devel- opment professionals and representatives of organizations sponsoring interns will Roslyn Eckel (center), director provide guidance and general oversight of the TSU/Third Ward CDC, for the program to ensure students and Joshua Hill (left), dean of the School of Technology, receive the right balance of classroom developed TSU’s new instruction and practical experience. Community Development “Classroom instruction will help stu- Leadership and Internship Program. The program will dents amass a knowledge base,” Eckel develop leaders for says, “but the internship will teach them organizations revitalizing Houston’s inner city. Rodney what it takes to operate a nonprofit in Moton is a law student and the real world.” ◗ intern helping Eckel.

6 FEDERAL RESERVE BANK OF DALLAS • PERSPECTIVES • SECOND QUARTER 1998 from the program at any time, but they must remain for the full term to earn the matching funds. Those participating for IDAs the full term must use the money for one of three purposes: buying a home, start- ing a business or paying for postsec- ondary education. Participants open savings accounts at Spur Compass Bank in Austin, and CTMHA manages the matching funds. Homeward Bound provides the mandatory educa- tion programs on budgeting, saving, Savings credit and home buying. “Our IDA program is just getting started,” comments Dugan. “But we know this approach to building assets Asset-Building works because similar programs are The IDA program helps participants already seeing results.” learn to think about the future and realize Opportunities for Participants in an IDA program they have choices in managing their offered through the Chicago Women’s money. Participants learn to save under tough conditions, distinguish needs from Low-Income Families Self-Employment Project are cashing out desires and set long-term goals. their accounts and realizing the benefits of saving. The two-year program was In January the Central Texas Mutual developed in combination with the city account, up to $500 per year. Compass Housing Association (CTMHA) kicked off of Chicago and Harris Trust and Savings Bank has committed $40,000 per year for Great IDeAs, the Austin adaptation of a Bank. It allowed the women, who are four years to help CTMHA administer the program that helps low-income families making the transition from welfare to program. The bank will also provide 150 save for a brighter future. work, to accumulate an average of free savings accounts. According to Caroline Dugan, Great approximately $1,800. This asset-based approach to com- IDeAs program director, plans are to Uses for the savings vary. One par- bating poverty has something for every- help families with earnings at least 60 ticipant is taking the classes required for one, according to Brian Anderson, senior percent below the median family income a hairdresser’s license. Another bought a vice president of Compass Bank in learn to build assets with Individual computer that will allow her to market Austin. “Where else can someone deposit Development Accounts (IDAs). CTMHA her janitorial service over the Internet as $40 and have it matched with $80 plus established the program in partnership well as create flyers and keep accounts. interest?” he asks. For its investment, the with Compass Bank; the Corporation for A woman who sews for people in their bank gains new depositors through low- Enterprise Development (CFED), a homes can expand her market now that transaction savings accounts, future busi- Washington, D.C.-based nonprofit she has a car. And another recently ness opportunities, positive public focused on asset building; and Home- opened a gift shop. relations and possible consideration ward Bound, an Austin nonprofit that But Sherri Moses, manager of the under the Community Reinvestment Act. provides money management training money and assets program for the The community benefits from the stabi- and home buyer education. Chicago project, emphasizes that “while lizing effect of families becoming home Great IDeAs participants open their having a chunk of money to invest is or business owners or increasing their savings accounts with $10 and save important, it’s the IDA program’s process human capital through higher education. between $20 and $40 per month. Each that is helping change lives.” “It’s a win-win-win situation for fami- dollar they save is matched with $2 from CTMHA was one of 13 IDA demon- lies in the program, the community and a combination of local and national pri- stration programs selected to receive an the bank,” says Anderson. ◗ vate funds. At the highest rate of savings, annual $25,000 operating grant for up to a family could have access to $6,000 at four years from the Corporation for the end of the four-year program. Par- Enterprise Development. CFED also pro- ticipants can withdraw their contributions vides half of the match on each IDA

FEDERAL RESERVE BANK OF DALLAS • PERSPECTIVES • SECOND QUARTER 1998 7 James Carr Continued from page 5 References logical innovation in the housing-finance Board of Governors of the Federal Reserve System (1998), “Financial and Business Statistics 1998,” Federal industry. The development and wide- Reserve Bulletin (Washington, D.C., March). FEDERAL spread application of credit-scoring mod- Chicago Title and Trust Company (1998), Who’s Buying Homes in America: Chicago Title and Trust RESERVE BANK els, for example, have the potential to Company’s 22nd Annual Survey of Recent Home Buyers OF DALLAS enhance access to home ownership by (Chicago, Chicago Title and Trust Company). reducing opportunities for subjective bias Eggers, Frederick J., and Paul E. Burke (1996), “Can the National Home-Ownership Rate Be Significantly in the underwriting process and by link- Improved by Reaching Underserved Markets?” Housing ing underwriting more closely with risk. Policy Debate 7 (First Quarter): 83–101. Eller, T. J., and Wallace Fraser (1995), “Asset Perspectives This potential cannot be fulfilled Ownership of Households: 1993,” U.S. Bureau of the Second Quarter 1998 overnight, however. The performance of Census, Current Population Reports P70-47 (Washington, Federal Reserve Bank of Dallas loans made using alternative credit- D.C., Government Printing Office, September). Community Affairs Office Fannie Mae Foundation (1996), Fannie Mae P.O. Box 655906, Dallas, Texas 75265-5906 scoring standards will need to be assessed National Housing Survey 1996 (Washington, D.C., June). 214-922-5286 and the standards perfected. In the inter- Fix, Michael, and Jeffrey S. Passel (1994), Gloria Vasquez Brown Immigration and Immigrants: Setting the Record Straight Vice President [email protected] im, lenders will need to ensure that (Washington, D.C., The Urban Institute). minority households are not adversely Joint Center for Housing Studies of Harvard Nancy C. Vickrey Community Affairs Officer affected because of nontraditional or University (1997), The State of the Nation’s Housing 1997 [email protected] (Cambridge, Mass., Joint Center for Housing Studies, imperfect credit histories. Ariel D. Cisneros October). Community Affairs Specialist Joint Center for Housing Studies of Harvard [email protected] Conclusion University (1995), The State of the Nation’s Housing 1995 Jim V. Foster (Cambridge, Mass., Joint Center for Housing Studies, Community Affairs Specialist Home ownership is a major compo- June). [email protected] nent of America’s economic productivity Pitkin, John R., Dowell Myers, Patrick A. Simmons Bobbie K. Salgado and Isaac F. Megbolugbe (1997), Immigration and Houston Branch, Community Affairs Specialist and a key contributor to household net Housing in the United States: Trends and Prospects [email protected] worth. Existing low home-ownership (Washington, D.C., Fannie Mae Foundation, May). Publications Director: Kay Champagne Simmons, Patrick A. (forthcoming), Housing Writing: Barbara Cody rates combined with significant projected Statistics of the United States, 2nd ed. (Washington, Editors: Anne L. Coursey household growth make minority and D.C., Bernan Associates). Monica Reeves Design: Gene Autry recent immigrant households the emerg- U.S. Department of Housing and Urban Development (1995), Home Ownership and Its Benefits, The views expressed are those of the authors ing home-ownership markets of the next Urban Policy Brief no. 2 (Washington, D.C., August). and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. millennium. Improving home-ownership Articles may be reprinted on the condition attainment among this emerging market seg- that the source is credited and a copy is provided to the Community Affairs Office. ment will benefit financial institutions, new Internet Web Site: www.dallasfed.org homeowners and the national economy. ◗

FEDERAL RESERVE BANK OF DALLAS P.O. BOX 655906 BULK RATE U.S. POSTAGE DALLAS, TEXAS 75265–5906 P A I D DALLAS, TEXAS PERMIT NO. 151