African Americans are more likely to experience difficulties when submitting applications for homes
According to Leonhardt (2015), African Americans are more likely to experience difficulties when submitting applications for homes. Blacks often search for housing in black communities or those with a variety of racial compositions compared to whites and less in white neighbourhoods. The social class has an influence on the resource at the disposal of an individual. The individuals with low income find it difficult to access one critical source of information on housing; the internet. The high-income people are more likely to get access to data from community organizations and the internet. The search locations for housing options are an impediment to African Americans due to affordability. Segregation, therefore, affects blacks due to the discriminatory practices in the housing options, which prevents them from residing in specific neighborhoods.
The low income also affects the differential use of resources because many blacks in New York are likely to avoid real estate agents who are whites due to the fear of discrimination (Leonhardt, 2015). Due to the income gaps between the blacks and whites, former are more likely to live in average or poor neighborhoods where there are no high-quality schools around, poorly-equipped and few daycare options and absence of parks. These neighborhoods have public transport options which are not convenient. The choice of neighborhoods exposes the African Americans to crime, poverty and low education test scores.
Areas such as Milwaukee and Newark within NYS are perfect examples where income inequalities influence and race affect the choice of housing and neighborhood. Blacks and white families with similar incomes reside and grow up in different economic backgrounds. For instance, white families with an annual income of $50,000 are more likely to live in neighborhoods where their median income is almost twice as large as that of black communities. Income inequalities tend to be more in metro areas (Leonhardt, 2015).
An estimated 2.5 million people reside in rent-regulated housing units in New York (Leonhardt, 2015). These residential areas affect their access to transportation, employment opportunities, healthcare and education. The majority of these individuals in rent-regulated areas have low incomes whereby their monthly income goes to rent expense, leaving meagre disposable income to cater for other costs such as food and clothing, among other essentials. The high rental cost affects the standards of living. It influences the schooling options and means of transit leading to reduced upward mobility. The renting options keep on rising hence driving the blacks to look for indecent housing options.
Moreover, income inequalities encourage residential segregation (Quick & Kahlenberg, 2019). With acute residential segregation, appreciation in property and fixed assets stagnate in African American neighborhoods. The whites shy away from purchasing fixed assets or property in black-dominated neighborhoods citing insecurity, among other reasons. The lack of interest among the whites and the wealthier people of color to buy property in these neighborhoods affects the rates of home appreciation. Market segregation affects African Americans reducing their accumulated wealth. The income inequalities impose huge burdens on blacks, impacting on the choice of educational programs for their children and saving plans for their retirement (Quick & Kahlenberg, 2019).
Income inequalities affect exposure to concentrated poverty. Whereas whites live in affluent neighborhoods with socioeconomically integrated schools, the concentrated poverty drives blacks to high-poverty schools leading to low scores on their cognitive abilities (Quick & Kahlenberg, 2019). The low cognitive scores contribute to reduced chances of securing a well-paying job which eventually affects their intergenerational mobility.