Black and white homebuyer, homeowner, and household segregation in the United States, 1990–2010

• Segregation trends for new black and white homebuyers, homeowners, and households.
• Analysis employs HMDA data 1992–2010 combined with three decades of US Census data.
• Black homebuyers are less segregated from whites than black homeowners overall.
• Lending growth associated with declines in black homeowner and household segregation.
• Subprime lending was related to increased homeowner segregation only.

As homeownership has been expanding in the United States over the past several decades, residential segregation between blacks and whites has been declining in most metropolitan areas. However, the degree to which the residential patterns of new homebuyers have mirrored these overall trends in segregation and how the massive increase in home buying has related to changes in segregation has remained largely unexplored. This paper examines the segregation of new black homebuyers from white households, new white homebuyers from black households, and black and white households from each other using Home Mortgage Disclosure Act (HMDA) data from 1992 to 2010 merged with data from the Census and ACS. I find that black homebuyers are less segregated from white households than black homeowners overall and black households in general, providing evidence in support of the spatial assimilation model that would predict better outcomes for homeowners. Also consistent with the spatial assimilation perspective, I found in the multivariate models that increased income parity between blacks and whites and growth in black lending are associated with average declines in black/white household segregation from 1990 to 2010. Although subprime lending was not associated with overall changes in segregation, metropolitan areas with higher percentages of loans to blacks from subprime lenders experienced increases in segregation of both black homeowners from white households as well as white owners from black households.