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The Unraveling of the American Dream: Foreclosures and Communities of Color in Minneapolis

Almost all of the research related to foreclosures fails to consider the role of household characteristics—a surprising omission because the effects of foreclosures are probably felt most acutely at the household level. Ryan Allen (Humphrey School of Public Affairs) examined the relationship between household characteristics and foreclosures. Working with Minneapolis Public Schools, Allen created a unique dataset that includes neighborhood, household, property, and loan characteristics for a sample of foreclosed and non-foreclosed properties in Minneapolis. Using this dataset, Allen estimated random effect models that indicate the relationship between household characteristics and foreclosures, while holding neighborhood, property, and loan characteristics constant. In conjunction with the Minnesota Home Ownership Center, Allen interviewed heads of households that have experienced foreclosure to determine the causes of foreclosures and what effect the foreclosures have had on the financial opportunities and social capital of the household.

Project Award Date: 
2009-05-15
Community organization or agency: 
Minneapolis Public Schools, Minnesota Home Ownership Center
Reports and related files
Report or related publication: 
Sponsoring CURA Program: 
CURA Contact: 
Edward Goetz Director, CURA (612) 624-8737