a) The question I am answering is: The housing crash of 2008 had an adverse effect on minority wealth creation in the United States. However this crash, along with a failing MBS market, leveled out housing prices across the Country.
i) I will also look at this at the State level .
b) This question is interesting because this is biggest housing crisis since the 1930’s and it will be intriguing to see how it has affected minority wealth creation. Housing is the way that families for decades have built wealth, what will the data show us?
c) I was able to take a look at the CMBS market this summer, and it was extremely interesting to see the adverse effect that the housing crisis had on not only the overall economy but the commercial market and household markets as a whole.
d) In the following paragraphs I will outline the a brief history of wealth creation in the United States through housing, talk about the market prior to the crash and post-crash, outline minority housing markets in the United States, briefly touch on the Mortgage Backed Securities Market, and finally conclude my work with the data I have found and tested.
- Literature Review
a) I want to make the reader aware, through others articles and data, just how important the housing market is to the overall economy.
b) After looking through articles, there have been papers written on the correlation between the housing market and minorities however I have not come across the correlation between the crisis effecting wealth creation in minority communities.
c) I have defined wealth as a measurement of Equity/Property Value. I will be looking into the Income, Equity, Property Value of Nationwide statistics as well as State statistics. I have also looked into the number of home applications over a 5 year period based on race, gender, and sex.
d) I think it is important to analyze the market over a specific time period. I am picking to analyze the market from 1994 to date. The reason being, is that during this time we have had bubble and crashes, and it will be a good indicator of true wealth.
a) I am using data from the Freddie Mac and Fannie Mae websites as well as other data that I have found from government sites.
b) The idea data would to have information on individuals assets, this way we could look at an all-encompassing definition of wealth, rather than the way I am defining it.
c) My data has come from a collection of sources, including Ginny Mae, Freddie Mac, Fannie Mae, the census bureau, and information from leading investment banks. The time frame I am analyzing is 1994 to 2012.
a) Bring together my paper in a concise manner where I state how I either proved or disproved my initial hypothesis.