New Faces, New Neighbors? How Latino Population Growth and Lending Expansion Shapes the Neighborhood Racial and Ethnic Composition for White and Latino Homebuyers

Fueled by increased socioeconomic status (SES), geographic mobility, and access to lending, Latino home buying expanded during the recent housing boom. However, less is known about the types of neighborhoods Latino homebuyers accessed during this time. To address this gap, we explore how SES, mortgage type, and the metropolitan racial and ethnic context affected the racial and ethnic composition of neighborhoods for new white and Latino homeowners. We use data from the Home Mortgage Disclosure Act to explore these processes in 317 U.S. metropolitan areas from 2000 to 2010. Overall, we find evidence supporting both spatial assimilation theory and place stratification theory: while increased SES and loan amounts led to more white neighbors for both white and Latino homebuyers, subprime loans and the racial and ethnic context of metropolitan areas continue to constrain neighborhood attainment for Latinos.