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Fri November 16, 2012
Great Recession impact biggest on families in poverty
It's been over three years since the recession officially ended, but many Americans are just now seeing their household wealth return to pre-recession levels.
For Americans living in poverty affected by predatory lending practices and underwater mortgages the outlook is still grim.
Between 2007 and 2009 families in low-poverty neighborhoods experienced a 41 percent loss in household net worth. Families in high-poverty neighborhoods saw their household net worth decrease by an alarming 91 percent.
Those in high-poverty neighborhoods were also the most likely to be unemployed between 2007 and 2009, with only 53 percent of residents having employment both years.
Some other key findings include:
- Families in low-poverty neighborhoods were more likely to be homeowners and experience home equity loss.
- Families in high-poverty neighborhoods are more likely to be behind on mortgage payments now.
The reports' authors suggests greater assistance be given to families in high-poverty neighborhoods who are now exposed to higher levels of economic insecurity.