Arkansas' housing gap widens
Lenders denied 26% of Arkansas' Black mortgage applicants in 2020, the third-highest denial rate in the U.S., a recent report from Zillow shows.
Why it matters: The report provides more evidence that the pandemic is affecting Black Americans disproportionately, writes Axios' Hope King.
Driving the news: The gap between denial rates for Black mortgage applicants and white applicants grew by 10 percentage points between 2019 and 2020, based on Zillow's analysis of the latest federal Home Mortgage Disclosure Act data.
By the numbers: The denial rate for Black applicants was more than double the denial rate for white applicants (12.9%).
- People who identify as Black or African American make up nearly 16% of the state's population, according to the 2020 U.S. census.
- Only Mississippi and Louisiana denied Black applicants at higher rates than Arkansas — 31% and 26.1%, respectively.
What they’re saying: “The disproportionate impact of the pandemic on Black households has stalled efforts to close gaps in credit access, homeownership, home values, and mortgage denial rates, making the journey to equity even slower than it already was,” Zillow market analyst Nicole Bachaud wrote in the report.
Of note: Pacific Islander applicants were denied at a rate of 19.4% in Arkansas and Hispanic applicants were denied at a rate of 16.4%.
An interactive version of the map above: Mortgage denial rates by race in 2020
Go deeper: Race and housing in America
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