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21 HOW LOCKDOWNS ARE IMPACTING MINORITY HOMEOWNERS Coronavirus is set to widen the minority wealth gap, according to a new Urban Institute report entitled "How Economic Crises and Sudden Disasters Increase Racial Disparities in Homeownership." e report states, "e Great Lockdown, instituted to reduce the spread of the novel coronavirus, has crippled households, jobs, and businesses in ways we have not seen in modern history, and that will have lasting effects on racial homeownership and wealth gaps." e researchers looked at the aftermath of Hurricane Katrina in 2005 and the Great Recession to examine how COVID-19 might exacerbate the wealth gap. eir data analysis finds that natural disasters economic downturns hit communities of color harder. However, households with savings or home equity they can tap are better able to weather the storms. "Redlining is still alive and well in markets today," said Alanna McCargo, VP for Housing Finance Policy at the Urban Institute. "Segregated neighborhoods still exist, and if that neighborhood is predominantly Black, it's valued lower. ere is still an appraisal bias." Analyzing data from the Census Bureau Household Pulse Survey, the Urban Institute identified how Black homeowners were more likely to miss or defer mortgage payments in May and reported higher uncertainty for June payments. e Pulse survey also reveals significant differences in the ability to pay mortgages at the time of reporting and who expected to be able to pay the following month. Among people with mortgages, 28% of Black homeowners did not pay or deferred their mortgage in May, compared with only 9% of white homeowners. Latino and Asian American homeowners with mortgages paid in June at rates of 15% and 11%, respectively. e prospects for June look a bit different, Urban notes. Black and Latino homeowners with mortgages expressed similar rates of concern about paying their mortgages—27% and 25%, respectively, had slight or no confidence—compared with only 10% of whites. Asian American homeowners were more concerned about paying their mortgages than a month ago: 18% had slight or no confidence. Journal