Children in Rental Housing Disproportionately Affected
142,000 children in owner occupied homes impacted in NJ
A new brief from First Focus and the Brookings Institution estimates that one in ten children has been affected by the foreclosure crisis, with approximately a third of these children living in rental housing. The brief is an update of a 2008 estimate that tallied two million children affected by the foreclosure crisis; the recent update incorporates new data covering the impact on children living in rental units affected by foreclosure.
In NJ, 142,000 children in owner occupied homes impacted. The numbers in rental units are higher but difficult to quantify.
The research identifies:
2.3 million children in owner-occupied housing whose homes have been lost to foreclosure; and
3 million additional children currently living in owner-occupied homes are at serious risk of losing their homes in the immediate future.
This estimate is based on data gathered by the Center on Responsible Lending, covering loan performance as of February 2011. This dataset was combined with American Community Survey (ACS) data on the number of children per household in owner-occupied homes with mortgages.
In sum, the report finds that 8 million children have been affected by the foreclosure crisis directly. In order to address the needs of children affected by foreclosures, the researchers recommend policies that promote housing stability. The report calls for:
Programs to help children adjust to sudden moves and school changes;
Further evaluation of the McKinney-Vento Education for Homeless Children and Youth;
Policies to expand the reach of existing loan modification programs;
A need to focus on expanding the supply of affordable rental housing, as many families faced with inevitable foreclosure are turning to renting; and
Funding the National Housing Trust Fund in FY13 as a policy priority.