Understanding the Wealth Gap: How Did We Get Here?
Abstract: The damaging impact of the foreclosure crisis and recession on homeownership ? the main pathway for building wealth, especially for low- and moderate-income (LMI) households ? brought into stark relief the need for better access to stable, diversified savings strategies. At the same time, it is critical to recognize that homeownership remains one of the largest and most vital assets for many families. In this article, we detail the traditional role of homeownership in building overall wealth, explain why LMI households and households of color found themselves particularly vulnerable to loss during the recession, and discuss why it is critical to restore and support affordable and sustainable homeownership options for LMI households.
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Provider: Federal Reserve Bank of San Francisco
Part of Series: Community Investments
Publication Date: 2014