Business
For Black Homeowners, Great Recession Has Not Receded
By Freddie Allen
Senior Washington Correspondent
WASHINGTON (NNPA) – Most economists agree that the Great Recession, sparked by the housing market crash, officially ended in 2009, but the fallout from the crisis will continue to hurt Black families, especially Black homeowners, for decades to come, according to a new report commissioned by the American Civil Liberties Union (ACLU).
“In 2007, median wealth excluding home equity was $14,200 for blacks as compared with over six times that amount, $92,950, for whites. Home equity, therefore, made up 51 percent of total wealth for the typical white homeowner in 2007. For the typical black homeowner this same year, on the other hand, home equity constituted a far larger 71 percent of total wealth.”
The report continued: “The fact that blacks hold the bulk of their wealth in home equity likely explains, at least in part, why black wealth, on a percentage basis, declined more than white wealth during the housing bust and subsequent Great Recession.
The report conducted by the Social Science Research Council found that even though Black families and White families lost wealth during the Great Recession, White families lost less and recovered faster than Black families.
White wealth levels, excluding home equity, showed signs of recovery between 2009 and 2011, measuring zero losses, while 40 percent of non-home-equity wealth held by the average Black family evaporated during the same period.
And while the typical Black family shed another 13 percent of their non-home-equity wealth, from 2009-2011, White families, on average, saw their home-equity wealth losses “slow to zero.”
“Not only were Black homeowners devastated by the housing market collapse, they are now being left behind,” said Rachel Goodman, a staff attorney with the ACLU’s Racial Justice Program. “It is very much a tale of two recoveries.”
The report said that between 2007 and 2009, the average White family lost 9 percent of the equity in their homes, compared to average Black homeowner who experienced a 12 percent fall in home equity.
“This disparity may stem from the fact that blacks were more exposed to predatory loans and other types of toxic mortgages and ballooning interest rates as compared to whites, leading to disparate rates of delinquency and foreclosure,” the report said.
Over the next two years, that slide in home equity would shrink to 2 percent for White families and 6 percent for Black homeowners. Further, these losses slowed to only 2 percent between 2009 and 2011 for White households, but for Blacks, home equity values continued to decline by 6 percent.
“While White home equity began to recover quickly after the housing crisis stabilized, this was not the case for Blacks,” the report said. “This difference likely emerges as a result of Blacks’ disproportionate exposure to predatory loans and other deceptive mortgage schemes.”
The Great Recession had a profound impact on the course of Black wealth and the racial wealth gap in the United States. Researchers predicted that, without the Great Recession, the ratio of White to Black median wealth would have decreased “from 4.4 times greater in 1999 to four times greater by 2031.” Instead the gap will widen and the average White family’s wealth is predicted to be 4.5 times greater than the average Black families wealth.
“By 2031, White wealth is forecast to be 31 percent below what it would have been without the Great Recession, while Black wealth is down almost 40 percent,” stated the report. “For a typical Black family, median wealth in 2031 will be almost $98,000 lower than it would have been without the Great Recession.”
Researchers also indicated that the home equity values the adult children of Black families that took losses during the recession will also suffer.
“Without the Great Recession, by 2050, home equity values for Blacks and Whites whose parents or grandparents owned a home at some point between 1999 and 2011 may have approached parity,” the report said. “As a result of discriminatory lending practices and the Great Recession, our analysis suggests that the next generations of Black families will still have home equity values only 70 percent of their white counterparts.”
Citing a joint study by the Department of Housing and Urban Development and the Treasury Department, the ACLU study noted that, “as of 2000, ‘borrowers in Black neighborhoods [were] five times as likely to refinance in the subprime market than borrowers in White neighborhoods,’ even when controlling for income.”
When Bank of America bought Countrywide Financial in 2008, the bank’s track record of troubling mortgage-lending practices and a discrimination case came with the deal. In 2011, Bank of America settled the case with the Justice Department for $355 million. The Department alleged that Countrywide had engaged in “discriminatory mortgage lending practices against more than 200,000 qualified African-American and Hispanic borrowers from 2004 through 2008.”
In 2012, the Justice Department settled a fair lending case with Wells Fargo Bank, over allegations that the financial institution, “engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009,” a statement for the Justice Department said.
Investigators also found that minorities were steered into subprime mortgage loans at higher rates than similarly qualified White borrowers.
The settlement included $184.3 million for minority borrowers and another $50 million in resources for direct down payments to help residents living in communities hit the hardest during the housing crash.
But it’s going to take more than settlement money to help Black homeowners guided into subprime mortgages, who were crushed during the housing market crisis as they continue you struggle almost six years after the end of the recession.
In the press release about the report, Sarah Burd-Sharps, the co-director of the Social Science Research Council’s Measure of America project, said that, “Steps can be taken right now to help close the growing racial wealth divide, and to ensure that the next generation has the benefits of assets and savings that bring a more secure future.”
The report recommended that policymakers closely monitor current lending practices at banks to protect low-income and minority borrowers from discrimination. The report also suggested that lawmakers clarify legislation governing access to credit and that they give regulators more power to guard consumers against racially disparate practices in servicing mortgage loans.
Goodman concluded: “This study makes clear that the devastating impact of the financial crisis on Black families’ wealth will continue until policymakers address this pressing issue.”
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Oakland Post: Week of April 2 – 8, 2025
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Oakland’s Most Vulnerable Neighborhoods Are Struggling to Eat and Stay Healthy
For this story, we focused on eight of the 12 ZIP codes in Oakland, those pertaining to East and West Oakland. The ZIP codes include 94601, 94603, 94505, 94606, 94607, 94612, 94619, and 94621. We chose to concentrate on these specific areas, known as the Oakland Flatlands, due to its longstanding history of extremely low-income households and racial inequalities compared to ZIP codes in the Oakland Hills.

These Are the Contributing Factors
By Magaly Muñoz
On a recent trip to the grocery store in West Oakland, single mom Neemaka Tucker contemplated what’s more important to her family’s needs – expensive fresh produce or cheap instant ramen noodles.
“I’m trying to teach my kids to eat healthy, but then my pocket is like, ‘I’m broke’. Getting the processed foods is going to fill you up faster, even though it’s not good for your body,” Tucker said.
Bay Area residents are spending over $100 more a month on groceries than they were pre-pandemic. Those higher costs are straining wallets and forcing families to choose cheap over healthy, possibly contributing to more health problems. These problems are disproportionately affecting people in East and West Oakland, in neighborhoods primarily of low-income families of color.
Oakland residents are experiencing more health problems linked to poor diets, like diabetes, obesity, and heart disease than before the pandemic, particularly in neighborhoods of East and West Oakland, data shows.
“We see a direct relationship between what we eat and medical problems. What we eat affects our weight, our blood pressure and all those things circle back and have an effect on your diseased state,” said Dr. Walter Acuña, a family physician at Oakland Kaiser Medical.
According to data by UCLA Center for Health Policy Research, about 1 in 10 adults in East Oakland neighborhoods experience food insecurity. That’s twice as many people than in most other parts of the city.
Oakland residents’ health concerns are growing
For this story, we focused on eight of the 12 ZIP codes in Oakland, those pertaining to East and West Oakland. The ZIP codes include 94601, 94603, 94505, 94606, 94607, 94612, 94619, and 94621. We chose to concentrate on these specific areas, known as the Oakland Flatlands, due to its longstanding history of extremely low-income households and racial inequalities compared to ZIP codes in the Oakland Hills.
According to UCLA research, about one out of every five adults under 65 in these areas of East Oakland reported poor or fair health. But these problems weren’t isolated to East Oakland. About one in six adults under 65 reported poor or fair health in areas of West Oakland, like the 94607 ZIP codes.
A handful of ZIP codes (94601, 94603, 94605, 94621) in East Oakland also have the poorest health outcomes of any area in the city. Residents there experience the highest rates of obesity and adult diabetes.
UCLA data shows that there has been a two percent increase in the number of adults diagnosed with diabetes in West Oakland (ZIP code 94607) since 2017- 2018. An estimated 11.8% of adults in 94607 in 2021-22 said they had diabetes, whereas 9.8% reported it several years before.
But the problem is more significant, only a few miles away.
In the 94621 neighborhood in East Oakland, an estimated 16.6% of adult residents reported having diabetes in 2021-2022, and the neighboring ZIPs averaged about 15%, according to UCLA data. 2017-2018 data show that only 11% reported a diabetes diagnosis in the 94621, a 5.6% change from recent numbers. The ZIP code estimates are higher than the states’, county’s, and city estimates—11%, 12.4%, and 12.3%, respectively.
Doctors working with Oakland and the larger Alameda County area are seeing an increase in the number of people coming to their offices with chronic health issues in the last few years.
Acuña said he’s frequently treating more and more adults with diabetes and hypertension.
Patients often tell him that it’s easier to afford unhealthy, cheap food than it is to afford the things that are going to make them feel better and stay healthy, he said
Dr. Steven Chen, Chief Medical Officer of Alameda County’s Recipe4Health, said that he’s seeing more kids across the region suffering from obesity, or adults on the brink of developing chronic illnesses, than in previous years.
“Chronic disease is a big epidemic. What’s the root of it? I think food is a big component,” Chen said.
He has seen evidence of improved health when people have access to better food. People with Type 2 diabetes experience a boost in metabolic and sugar management to healthy levels, and those with high blood pressures experience normal numbers.
Recipe4Health is a county-wide program that uses food-based interventions to treat and prevent chronic conditions, address food insecurity, and improve health and racial equity. The program provides up to 12 weeks of groceries for people who are at risk or are experiencing food insecurity.
It’s important for public sectors to have these kinds of investments locally because the results are tangible, he said.
“If our values are that no one gets left behind and that everyone should have an equal opportunity to health and health equity, then we need always to ensure that we are serving those communities that often are left behind,” Chen said.
Experiencing food insecurity in Oakland
Unfortunately, healthy food is becoming increasingly difficult for Oakland residents to access. Over the last five months, The Oakland Post heard from over 50 residents about their struggles finding and affording healthy food. We visited food banks, talked with people at markets and food distribution events, and distributed an online survey.
We learned that residents are travelling to other nearby cities to get cheaper groceries, financial assistance programs like CalFresh are challenging to navigate, wages are low, and food is getting more expensive while the quality appears to be dropping.
Andres, who asked us not to use his last name due to his undocumented status, said he often relies on food distribution from organizations like the Street Level Health Project for his weekly groceries. He wouldn’t be able to eat complete meals otherwise, due to the lack of consistent employment at his car washing job during the winter months.
With eight people living under one roof and only three adults contributing to the household income, he said things are tight.
“During these months, we’re always backed up on paying our bills, including rent, and we’re trying to do more with what little that we have, which is not much,” Andres said.
Andres’ biggest complaint about grocery shopping is the lack of fresh and healthy food that is affordable and good quality. He’s been to food banks and grocery stores where the produce rots within a day or two of receiving it, forcing him to buy fast food in order to feed his family.
Down the street at the Unity Council’s weekly grocery distribution, Mayra Segovia, a single woman in her 50s, said she visits this location almost every week to get food. Her fixed income on Social Security makes it difficult to afford her basic necessities.
Segovia said she receives CalFresh funding to pay for her groceries, but the almost $300 assistance is not enough to get her through the month, so she gets creative. She often does favors for local vendors in exchange for meals. Even with the Social Security checks of a little over $1,000 a month and other resources like subsidized housing, the cost of living is going up. She’s blaming the government for their contribution to the problem.
“We’re not all rich like Donald Trump and all those corrupt politicians, we don’t have that much money like that,” Segovia said.
Social service assistance is falling short
Several people we spoke with said financial food assistance like CalFresh isn’t supplementing the gaps in their budgets.
Neemaka Tucker, mom of two elementary-aged kids, said she receives $123 a month from CalFresh, yet she’s spending almost $600 on groceries at the store. She feels like she should be getting more assistance, especially considering her lower, single income. “I’m appreciative [of the CalFresh funds] that I get anything because every little bit helps, but it’s still not enough for my family,” Tucker said.
A lack of grocery store options in West Oakland has also made it even harder to get food on the table, Tucker said.
There are more convenience stores than grocery stores within walking distance to her home on the northeast side of West Oakland, and the prices seem to be exacerbated because of their limited food stock, Tucker said. A gallon of milk at the store could run her up to $3.80, but at the local convenience market, it’s nearly $6.
“I just find that the majority of the money that I’m spending is on the travel to get the food, then on the food itself,” Tucker said.
Healthy groceries are a necessity to manage Tucker’s health. She is diabetic and has high blood pressure, so eating and buying fresh produce is important because keeping her symptoms at bay is a must for her health. It’s been difficult to get what she needs for her body to maintain her chronic health problems because she often battles with lack of affordability of what she’s buying, she said.
“I find myself trying to figure out what’s healthy for each person and then have enough of it so we all can [eat well],” Tucker said. “Back in the day, bread and potatoes used to be staples to get your kids full, but food like that makes me sick because that’s too much [carbohydrates] since I have diabetes.”
Both her kids are athletes who also need healthy food. She’s finding that even though her kids don’t eat meat, which tends to be expensive, she’s still spending more than she’d like to on fruit and vegetables.
In Oakland, the local investment is low
In the last year, the city has cut grants to nonprofits like Meals on Wheels, which serves 3,000 hungry seniors, and Street Level Health Project, which provides groceries and meals to undocumented day laborers. Tax measures, like the Sugar-Sweetened Beverage Tax, were intended to help decrease the food and health crisis but are also not being managed in the way Oakland residents voted for, according to community leaders and advisory board members. The majority of the tax money is going towards funding city agencies.
The Oakland Post contacted city and county officials several times for comment but did not get a response.
Across the Bay Area, San Francisco is investing millions to address food insecurity through a pilot program that establishes free grocery stores in food desert districts. Shoppers of the pilot market said they have seen a positive change to the way they feed their families and how much they’re able to save every month.
Oakland resident PC, who chose to use an abbreviated version of his name to protect his privacy, said he’d be interested in seeing a market like the one in San Francisco because it would alleviate the tight budget he has for himself.
PC said he’s had some unpleasant experiences with food distribution workers being rude to residents waiting for grocery bags. “The line is already long as it is and can sometimes feel shameful when you’re going through hard times,” PC said, so an option to get free food in a setting that resembles a market would be ideal.
The garden lead for West Oakland’s People’s Programs, ab banks, helps deliver fresh produce from a local garden to households in the projects, because the need for healthier options has been particularly high in recent years, they said.
People’s Program serves around 170 people in the 94607 area with groceries, along with a mobile health clinic and free breakfast program. Their goal is to serve a community that already deals with its own set of disadvantages, and looks to show people that not everything needs to contribute to a bigger gain and people have the right to use the local land to grow the food they need.
Banks said they see firsthand what the lack of investment in West Oakland has done to folks: homelessness, priced out living situations, environmental racism, and lack of food access.
They explained that although they feel a duty and a calling to the work at People’s Program to help an underserved neighborhood, they questioned how the city is pouring millions of dollars towards finding solutions to Oakland’s biggest problems but no significant change has happened yet. banks said there are basic necessities that should be birthrights and not restricted to what the government thinks people need.
“[The investment] is not enough. There’s no access to fair housing, not enough access to food, not enough access to healthcare. But that’s just not specific to Oakland, that’s a United States problem,” banks said.
Reporter Magaly Muñoz produced this story as part of a series as a 2024 USC Annenberg Center for Health Journalism Data Fellow and Engagement Grantee.
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