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79 December 2024 J O U R N A L December 2024 » Louis to 175% in El Paso. Distressed communities in Philadelphia and El Paso experienced a rapid rise in housing unaffordability between 2007- 2022 as income growth lagged behind housing price growth. In contrast, aff luent areas in these cities are becoming more affordable, using the same index. In all three cities, commute times to work are higher for residents of distressed communities than residents of aff luent communities, making it more difficult to earn the income necessary to afford a home purchase. It Takes a Village: Social Ties Key to Buying a Home The Access to Small-Dollar Home- ownership qualitative study provides additional insights into the challenges and opportunities associated with small-dollar homeownership. This study was also compiled by Craig J. Richardson Economic Consulting with The Future of Land and Housing Program at New America. The report found that when traditional mortgage loans are not accessible, the culture of a community plays a large role in the strategies used to maneuver through those challenges and access homeown- ership. Regardless of income levels, it was rare for interviewees to buy a home with a standard mortgage loan without any outside financial assistance. "Local and community culture matters for the homeownership strategy relied upon, with individual initiative, family ties, and personal networks playing key roles," the report stated. Renters interviewed expressed pes- simism or discouragement about their prospects of becoming homeowners in the near future. There is a gap between reported data and the perception of the availability of small-dollar homes in each city. Uncovering the Policy Implica- tions on Mortgage & Housing The report's findings have several policy implications, including: • There is a need for policies that sup- port the development of affordable housing and increase access to cred- it for low- and moderate-income homebuyers. • There is a need to address the challenges facing smaller lenders in providing small-dollar mortgages. • There is a need for more research on the impact of the decline in small-dollar mortgage lending on homeownership and wealth building. Expert Insights: Recommenda- tions for the Future of Housing The report's authors recommend several steps that can be taken to address the decline in small-dollar mortgage lending and promote home- ownership. These include: • Supporting the development of innovative mortgage products that are tailored to the needs of low- and moderate-income homebuyers. • Providing incentives for smaller lenders to offer small-dollar mort- gages. • Increasing education and outreach on the homebuying process. • Addressing the issue of housing affordability through a variety of policy interventions. The decline in small-dollar mortgage lending is a serious issue that is contributing to the growing gap between the haves and have-nots in the United States. By taking steps to ad- dress this issue, policymakers can help to ensure that the American Dream remains within reach for all. The decline in small-dollar mortgage lending is a serious issue that is contributing to the growing gap between the haves and have- nots in the U.S.