Black and Latino residents in Connecticut face higher chances of losing their homes as well as getting evicted across the state.
That’s according to a report released this week by the Connecticut Voices for Children, an advocacy and research organization based in New Haven.
The report shows the problem is worsened by restrictive housing construction laws and regulations throughout the state. It recommends more state government action to promote affordable housing.
Any solutions would need to contend with sustained local opposition to denser housing, which shows no signs of dissipating any time soon.
The report shows Black and Latino homeowners have higher rates of delinquencies on their mortgage payments, said Samaila Adelaiye, a research and policy fellow for Connecticut Voices for Children.
“The percentage of Black and Latino households behind on mortgage payments is notably higher in Connecticut at 15.9% and 8.1%, respectively,” Adelaiye said.
The statewide average is 5.5 percent. Adelaiye said the reasons have much to do with the limited housing stock available, making homes more expensive for homebuyers.
Black and Latino renters and homeowners are more likely to struggle with their cost of living expenses according to the United Way CT’s financial hardship report, using data from 2021.
Connecticut Voices for Children said that only partly explains why Black and Latino residents face greater hardships. The report shows high home prices due to low housing stock are correlated to higher rates of subprime mortgages, where money is lended to people who would otherwise not qualify for traditional mortgages, resulting in higher interest rates.
Adelaiye said this is resulting in more foreclosures.
“Despite a decline in foreclosure rates spurred by practice government initiatives during the pandemic,” he said. “Connecticut continues to maintain a foreclosure filing rate higher than the national average and this trend is presently on the rise.”
The report was released as members of the Black and Puerto Rican Caucus fielded concerns from residents over affordable housing during a recent meeting, according to previous reporting from Connecticut Public.
