Great Recession impact biggest on families in poverty
A new report by the Pew Economic Mobility Project shows that while all communities were impacted by the Great Recession, families in high-poverty neighborhoods took the hardest hit.
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.