Types of Real Estate Ownership in North Carolina

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Types of Real Estate Ownership in North Carolina Powered By Docstoc
					Facing Change in Southeastern North Carolina
Leslie Hossfeld, PhD
GlaxoSmithKline Faculty Fellow in Public Policy and Public Engagement
University of North Carolina Wilmington

Once referred to as the “vale of humility         along three Tier designations represent-
between two mountains of conceit,”1               ing economic well-being. Tier 1
North Carolina has transformed itself             designations reflect the most distressed
from its humble origins to a progressive          counties in the state; in Southeastern
state embracing the new millennium.               North Carolina Bladen, Columbus and
From the boom of the Research Triangle            Duplin are Tier 1 counties. Tier 3
to the financial banking hub of                   designations represent the least
Charlotte, the state stands out on many           distressed counties in the state; in
indicators of progress, prosperity and            Southeastern North Carolina, both New
leadership. Yet the very problems that            Hanover and Brunswick counties have
have plagued the state for centuries              Tier 3 designations. Counties in-
endure, and the residue of these is the           between the most and least distressed
very issue Southeastern North                     counties have Tier 2 designations;
Carolinians must address. Persistent              Sampson, Onslow and Pender reflect
poverty, affordable housing, low                  these designations for Southeastern
incomes and enduring racial inequalities          North Carolina.
are the age-old problems plaguing our
region. Coupled with remarkable
population growth and a growing
immigrant population, the face of Down
East is changing – and how we respond
is critical to our future.

The Face of Southeastern North

Eight County Region
Population Boom
Southeastern North Carolina comprises
eight counties: New Hanover,                      The growth in population in the region
Brunswick, Columbus, Pender, Onslow,              stands out as one of the most remarkable
Sampson, Bladen and Duplin. The                   trends of the Southeast. The attractive
North Carolina Rural Center designates            coastal region has drawn retirees,
all these counties rural except New               relocated businesses and professionals,
Hanover.2 All are part of the                     and has attracted tourist dollars to the
Southeastern Economic Development                 area. Indeed, Brunswick County alone
Partnership, except for Duplin and                has been identified by the US Census
Onslow, members of the Eastern                    Bureau as one of the top 30 fastest
Economic Development Partnership.                 growing counties in the nation in 2005.
The North Carolina Department of                  Overall, the region has witnessed a 30%
Commerce ranks counties in the state

increase in population from 1990 to                         New Hanover
2005.                                                              Columbus

            Eight County Region Population                          Sampson

                       Growth                                        Onslow

                                            670,316                    Duplin
  700,000                         644,408
  600,000                                                             Bladen
  500,000                                                             Pender
                                                                   Brunsw ick
  200,000                                                                       0        50,000 100,000 150,000 200,000
       0                                                            1990   2000          2005
              1990      2000       2003      2005

US Census Bureau 1990, 2000, 2003, 2005
                                                         Source: US Census Bureau 1990, 2000, 2005 estimates

What this means for individual counties                  Overall, the region reflects an older
is often a strain on resources and infra-                population, with the median age of 36.
structure. The eight counties in this                    Onslow County, which houses Camp
region reflect remarkably different                      LeJeune Air Force Base in Jacksonville,
developmental paths: transitions from                    has the youngest median age of 25.
old tobacco and agricultural economies,                  Brunswick County has the oldest median
to manufacturing based economies to the                  age, 42, which reflects the growing
new remarkable boom of the North                         influx of retirees to the county.
Carolina Gold Coast. Manu-facturing
has changed in these regions from a                                                        Median Age

traditional textile apparel industry,                          45
                                                                           38       38    37    36
                                                               40                                    34   35            35     35
which has all but vanished, to meat                            35
                                                               30                                              25
processing plants which tend to favor                          25
Latino labor, to higher technology                             10
pharmaceutical production and research.                         0

                                                                                                                             Fl S
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The Gold Coast has witnessed a



dramatic increase in lower-end service
jobs that have not necessarily translated                Source: US Census Bureau 2000

into living wages. The table below
describes the growth for individual                      As the table below describes, the
counties from 1990 to 2000 to 2005.                      population in the region is pre-
                                                         dominantly white, 66%. The African
                                                         American population in the region
                                                         mirrors that of the state at about 24%.

                                                      White Paper Southeastern North Carolina

                      Population by Race
                                                                              Once a feature of the interior of the state,
                                                                              the Southeast now faces the challenges
      Onslow                                    70%                           of an immigrant population that is more
  New Hanover          16%

                                                  79%                         likely to settle and stay, much more so
    Brunsw ick

       Pender            22%
                                                                              than its transient, “revolving-door”
        Duplin                28%         54%
                                                                              nature of ten years ago. In both Duplin
    Colum bus                  31%
                                                                              and Sampson counties, for example, the
     Sam pson                 29%         54%                                 Latino population is over 14% as
       Bladen                      37%
                                          56%                                 illustrated in the table above.
                 0%   20%         40%     60%   80%     100%

Source: US Census Bureau 2004 expressed in percentages                        Many of the rural Southeastern counties
                                                                              feel overwhelmed with the presence of a
It is important to note that the Native                                       new ethnic group – pressures on social
American population in Southeastern                                           services providers, on schools, on jobs,
North Carolina is 8%, while it is only                                        on housing – particularly in rural
1% at both the state and national level.                                      counties which have felt the pain of
Southeastern North Carolina has the                                           economic restructuring of their
greatest number of Native Americans                                           manufacturing base. Tensions run high
east of the Mississippi River; this                                           and new social policy and solutions are
number is even higher when including                                          needed as Latinos arrive, attempt to
the Lumbee Native Americans in                                                assimilate and integrate into South-
Robeson County. While Native                                                  eastern North Carolina neighborhoods
American concerns at the state level may                                      and communities. It is a double-edged
seem insignificant, they are an important                                     sword, however.
concern Down East.
                                                                              Research on the dependence on Latino
Growing Latino Population                                                     labor in the blueberry industry of Pender
                                                                              county, the meat processing plants in
The Latino population in the state has                                        Sampson and Duplin counties and
essentially quadrupled since 1990.                                            landscaping industries of Brunswick and
Indeed, no state in the nation                                                New Hanover find that employers‟
experienced a larger increase in Latino                                       consistently describe their desire for
population from 1990 to 2000 than what                                        Latino labor over local labor4.
North Carolina experienced.3
                                                                              Yet in these same rural counties, many
                                                                              tensions arise as both newly-arrived
          Latino Population Estimates 2004
                                                                              Latinos and long-standing residents
    Brunsw ick           3.3                                                  strive to make ends meet. In Bladen,
      Pender                      4.5                                         Sampson, Columbus and Duplin
       Bladen                     4.6                                         counties, where over 75% of residents
    Colum bus           2.7                                                   were born in North Carolina, nativist
  New Hanover          2.5
                                                                              sentiments often erupt when the
        Duplin                                                      18.2
                                                                              economic and social landscapes feel
     Sam pson                                                14.3
      Onslow                        6.5
                 0            5            10           15            20

Source: Census Data 2005 American Community Survey

                                                                           White Paper Southeastern North Carolina

In reality, the region is being trans-                       Percent Population in Poverty
formed by the influx of Latinos. Tiendas
abound, Latino festivals are common –                   Bladen                                                 19%
                                                     Brunsw ick                                 13%
the landscape of the rural Southeast
                                                     Colum bus                                                 20%
looks and feels remarkably different                     Duplin                                          18%
from ten years ago; truly the economic,            New Hanover                                  13%
social and cultural landscape has                      Onslow                                          17%
changed. Recent research points to the                  Pender                                   14%
boost Latinos bring to the North                      Sam pson                                         17%

Carolina economy, approximately $756                              0%       5%        10%        15%         20%        25%

million in taxes.5 Yet the costs of this         Source: US Census 2003 estimates
new population in terms of social
services, unemployment, and illegal              Based on 2003 Census data below, the
immigration are just a few of the                average percent in poverty for the eight-
concerns we must address. How this               county region is 16.4%. For both the
impacts rural communities in                     State of North Carolina and the US, the
Southeastern North Carolina is being felt        poverty rate is around 13%. If we exam-
today. How we respond to this                    ine poverty by racial categories, we find
challenge is of critical importance.             a much more disturbing story.

Persistent Poverty Down East                     We can see from the data presented
                                                 below, that Black and Latino poverty is
Poverty is not new to Southeastern North         twice that of White poverty in Bruns-
Carolina.6 The transformation of North           wick, Pender and Onslow counties.
Carolina from its humble origins to a            Black and Latino poverty is
metropolitan state, characterized largely        approximately 2 ½ times higher than
by the growth of Raleigh-Durham,                 White poverty in Bladen, Duplin,
Charlotte, Greensboro/Winston-                   Sampson and Columbus counties. In
Salem/High Point, has simply not                 New Hanover County, Black poverty is
occurred in the Southeast, save for New          almost 3 times higher than White
Hanover County. The rural, small town            poverty. For the Southeastern eight-
South captures much of what South-               county region as a whole, poverty is 2.3
eastern North Carolina has traditionally         times greater for Blacks than for Whites.
been, and is, today. Enduring, persistent
                                                   New Hanover
poverty portrays many of the counties in
Eastern North Carolina. Indeed four                   Columbus

adjacent counties in the East are design-              Sampson

nated as persistent poverty county by the                Onslow
USDA-ERS; Hoke, Robeson, Columbus                         Duplin
and Bladen.7 These counties have                          Bladen
experienced significant manufacturing                    Pender
job loss, and given their close proximity,
it has been difficult for residents to find
employment in neighboring counties – a                                 0        10         20          30         40

traditional strategy in coping with job                                         White      Black      Latino
displacement.                                    Source: US Census Bureau 2003 Estimates

                                              White Paper Southeastern North Carolina

                                                                            troubling story. The mean child poverty
In the US as in North Carolina, certain                                     rate for the region for White children is
categories of people are at greater risk of                                 13%, for Black children 35%; that is,
being in poverty than others: children,                                     Black children in Southeastern North
non-whites, and women. These                                                Carolina are over 2 ½ times more likely
categories of people are                                                    to be poor than White children. In
disproportionately represented in the                                       specific counties the story is even more
grouping of “officially poor.”                                              alarming: In New Hanover County,
                                                                            Black children are five times more likely
Child Poverty                                                               than White children to be in poverty; 4
                                                                            times more likely in Bladen County; 3
Children are at the greatest risk of being                                  times more likely in Sampson and
poor anywhere in the United States.                                         Columbus; and 2 times more likely in
This holds true for the eight counties in                                   Brunswick, Pender, Duplin and Onslow
our region. As outlined in the table                                        Counties. If relationships are created
below, 22% of children under18 in the                                       along class lines, as social scientists
region live in poverty.                                                     have long argued, then the ramifications
                           Child Poverty
                                                                            of these remarkable discrepancies cannot
                                                                            bode well for future generations of
    Brunsw ick                                19%
                                                                            children in terms of securing networks,
       Pender                                 19%
       Bladen                                                29%
                                                                            and achieving social and cultural capital
        Duplin                                       22%
                                                                            that in-crease one‟s life changes and
      Onslow                            17%                                 enhanced quality-of-life.
     Sam pson                                    22%
    Colum bus                                                30%
                                                                            Feminization of Poverty
  New Hanover                           16%

                 0%   5%   10%    15%      20%      25%    30%     35%
                                                                            If we look at the gender of the house-
Source: US Census Bureau 2000                                               holder, we find that in families with
                                                                            female heads of households, 33% in the
The consequences of child poverty are                                       region are in poverty. This is called the
far-reaching and clearly an area where                                      feminization of poverty, a trend in the US
serious policy deliberation must occur.                                     whereby most poor families are headed
Important to note is that many children                                     by females. Lower salaries, lack of
live in families of the working poor, as                                    affordable housing and increased child
well as the „officially poor.‟ According                                    care costs, are a few of the problems
to the North Carolina Budget and Tax                                        which exacerbate the already difficult
Center, Eastern North Carolina had 37%                                      situation single-women heads of house-
of all North Carolina Earned Income Tax                                     holds face in raising their families.
Credit (EITC) claims in the state in
2002. The EITC is designed for families
who work but generally earn less than
200% of the federal poverty level.8

Racial differences in child poverty are
significant, as well. If we examine the
differences between white and black
child poverty, we see an even more

                                                                         White Paper Southeastern North Carolina

                     Female Headed Households in Poverty                               over 1 ½ times that of Black per capita
                                                                                       income which, for the region is $11,793.
       Duplin                                              30%
    Sampson                                                       33%
                                                                                       This translates into a $7,330 gap
      Pender                                               28%
                                                                                       between white and black incomes. Ex-
      Onslow                                                       36%                 pressed another way, blacks earn 62% of
 New Hanover                                               29%                         white‟s income in the region. In
    Columbus                                                              38%          Brunswick, Pender, Bladen, Onslow and
    Brunswick                                                      34%
                                                                                       Sampson, White per capita income is
      Bladen                                                           38%
                                                                                       over 1 ½ times more than Black per
                0%   5%   10%    15%     20%    25%    30%       35%    40%   45%
                                                                                       capita income; in Columbus and New
US Census Bureau 2000                                                                  Hanover it is almost twice as great.

                                                                                       Mean Household Income
Per Capita Income as a Measure of
Well-Being                                                                             The Mean Household Income for the
                                                                                       eight-county region is $42,270, much
A traditional measure of quality-of-life                                               lower than the average for the state of
has long been the per capita income of a                                               North Carolina which is $51,225. If we
nation, state or county. Increasingly,                                                 examine differences by race, within the
this has given way to market-based gains                                               region, we see troubling patterns
and losses as indicators of well-being.                                                emerge. White mean household income
Attention to per capita income still                                                   is significantly higher than all other
remains extremely important in under-                                                  categories of income and African
standing community well-being and                                                      American mean household incomes are
quality-of-life. Per capita income                                                     lowest in the eight-county region.
measures total person income divided by
total population. Therefore, the 2 month                                               Mean Household Income by Race
old and the 98 year old are included in
this measure – not just the economically                                                                         Per Capita Income

active.                                                                                      New Hanover                                          $23,123
                                                                                                Brunswick                                      $19,857
The per capita income average for the                                                              Pender                                 $17,882

Southeast region is $16,793,                                                                     Sampson                             $14,976

significantly lower than the state‟s                                                              Onslow                             $14,853
                                                                                                   Bladen                            $14,735
average of $20,307. According to the
                                                                                                   Duplin                            $14,499
North Carolina Rural Center, per capita                                                         Columbus                             $14,415
income for North Carolina rural counties                                                                    $0    $5,000 $10,000 $15,000 $20,000 $25,000
(of which there are 85) is $17,579
compared with $23,162 for North                                                        Eight-County Region Southeastern NC
Carolina urban counties.9
                                                                                       If we examine the mean household
The difference in per capita income by                                                 income gap (Table below) by race
race is significant and noteworthy. If we                                              categories, we see that African American
examine just the white/black differences,                                              incomes are $14,563 less than White
we see a troubling pattern emerge. As                                                  incomes in the region; Latino mean
the table above illustrates, White per                                                 household incomes are $12,272 less than
capita income for the region is $19,124,                                               white incomes and Native American

                                                                                    White Paper Southeastern North Carolina

           50,000                   $46,139                                          have increased in North Carolina (69%
                                                            $33,867                  in 200511) the gap between housing costs
           35,000                               $31,576               $34,835
                                                                                     and wages has also grown.12 Before
                                                                                     examining affordable housing criteria
           20,000                                                                    and issues, let us first examine home-
           10,000                                                                    ownership rates in the Southeast region.
                      Total          White          Black   Latino     Native
                                                                      Am erican

             mean household incomes are $11,304
             less. The table below visualizes this
             income gap, providing percentage of
             Black, Latino and Native American
             incomes to that of white incomes.

$16,000   $14,563                                    76%
$14,000              $12,272                         74%
$12,000                               $11,304
                              73%                    72%
$10,000                                                        Gap
 $8,000                                              70%
                                                               % White Income        Home ownership rates in the eight-
 $6,000        68%                                   68%                             county region are relatively high (74%)
 $4,000                                                                              as compared to the state, however if we
                                                     66%                             exclude in this measure mobile homes,
    $0                                               64%                             we find a much different picture. When
           Black      Latino          Native                                         excluding mobile homes, the regional
                                     American                                        landscape is much bleaker, given that the
                                                                                     wealth building accumulated in owning
                                                                                     mobile homes versus traditional homes
             The Table above examines the racial gap
                                                                                     is significantly greater.
             in income. African Americans in the
             region early 68% of White household
                                                                                        Sampson                                                          67%         79%
             incomes; Latinos earn 73% of White
             mean household incomes; and Native                                          Pender                                                                                85%

             Americans earn 75% of White mean                                            Onslow                                     46%

             household incomes.                                                      New Hanover                                    45%

                                                                                          Duplin                                                                           82%
             Home Ownership and Affordable                                             Columbus                                                           69%
             Housing                                                                   Brunswick                                                                         80%

                                                                                          Bladen                                                                 75%
             One of the best indicators of wealth for
             most Americans is home ownership;                                                     0%   10%   20%   30%    40%       50%     60%         70%         80%         90%

             indeed for most Americans home owner-                                                                    % White Own   % Black Own

             ship comprises 60% of a family‟s
             wealth.10 While home ownership rates

                                                                                  White Paper Southeastern North Carolina

If we add race to this variable, we find a      Educational Attainment
common pattern in wealth accumulation:
that White have not only higher in-             About 15% of the region‟s population 25
comes, but greater wealth accumulation          and older holds a bachelor‟s degree or
in terms of home ownership.                     higher. Of the eight counties, New
                                                Hanover has the highest percentage of
There are two important measures to             population with BA degree or higher at
differentiate when examining home-              31%, much higher than the state average
ownership. Homeownership rates                  of 23%. Columbus, Duplin, Bladen and
include all types of housing, from              Sampson have the lowest, around 10-
cottages to modular homes to mansions.          11%.
More telling in terms of measuring
family wealth is the measure
                                                Percent of Population 25 and Older with BA
Homeownership Excluding Mobile
                                                degree or higher
Homes. This is an important distinction
given that mobile homes provide less
equity for families and consequently less         Columbus          10%
wealth.                                              Duplin          11%

According to the Housing Finance                     Bladen          11%
Agency in Raleigh, affordable housing is
                                                  Sampson            11%
defined as when a homeowner pays no
more than 30% of income for monthly                 Pender               14%
mortgage payments, insurance, taxes and
utilities; for a renter, no more than 30%           Onslow                15%
of income for rent and utilities.13 In            Brunswick                16%
their 2006 report, the Housing Finance
Agency finds that no North Carolinian           New Hanover                         31%
working at minimum wage can afford an
efficiency apartment in any county at the                     0%   10%     20%   30%      40%
Fair Market Rent (FMR) described
above. For low income families
(families early less than 80% of median
                                                Rural North Carolina workers often have
family income for the area) in the region,
                                                not completed their high school degree,
finding affordable housing is a
                                                and fewer still have associate or bachelor
tremendous problem. For the region,
                                                degree. Many of these workers do not
49% of low income house-holds pay
                                                have a high school diploma and are
more than 30% of their income on
                                                faced with returning to school and then
housing. Furthermore, 93% of low
                                                finding training for new skills. The
income households in the region find
                                                table below provides data on the
housing costs a problem.14
                                                population over 25 without high school
                                                diplomas in each county in the region.

                                             White Paper Southeastern North Carolina

                                                                     verve and voracity exemplified in other
                                                                     parts of North Carolina.

                                                                       Zebulon Vance about North Carolina in
                                                                     reference to Virginia and South Carolina
                                                                       The North Carolina Rural Center defines
                                                                     “rural” as having a density of fewer than 200
                                                                     people per square mile based on the 1990 US
How Do We Score?                                                     Census.
                                                                       See Popke, Torres, Power, et al 2005 A State
                                                                     Transformed: Latino Immigration to North
                                                                     Carolina, East Carolina University.
               How Do We Score?                                      4
                                                                       See We Like Latino Labor Hossfeld, Leiter and
                                                                     Tomaskovic-Devey, 2004
                        Great Inequalities                             See The Economic Impact of the Hispanic
                        Southeastern NC                              Population on the State of North Carolina 2005
                                                                     University of North Carolina Chapel Hill
  High Rural Poverty      Low Incomes             Wealth               Poverty is defined as a standard of living that
                                                                     falls below the basic minimum requirements to
                                                                     sustain an adequate diet, adequate housing and
    Child Poverty
                       Income Gap by Race    Affordable Housing      adequate health. See for
                                                                     measurements and definitions.
                                                                       Persistent Poverty counties are those counties
                                                                     that have had poverty rates of 20% or more in
                                                                     each decennial Census between 1970 and 2000.
                                                                       See NC Tax and Budget Center, “North
                                                                     Carolina‟s Unfinished Transformation,” 2006
In a region with remarkable growth and                               9
                                                                       North Carolina Rural Center
a growing affluent coastline, we find that
the enduring problems which have                                     10
                                                                        Residential real estate is the biggest holding of
characterized rural North Carolina for                               wealth for most households, see Main Street
generations have simply not gone away.                               Economist, September 2005
                                                                        US Census Bureau Housing Economics
High pockets of rural poverty, low                                   Statistics Division 2006
educational attainment and a racial                                  12
                                                                        North Carolina Housing Finance Agency
divide in income and access to resources                             2006; North Carolina Progress Board 2006
linger and aggravate embedded social                                 14
                                                                        North Carolina Housing Finance Agency
and economic problems Down East.                                        North Carolina Housing Finance Agency 2006
                                                                     Report, February
Our policy deliberations must focus on
these most fundamental problems to
ensure comprehensive economic
development throughout the region. We
must recognize and tackle the crippling
power of enduring poverty and
inequality Down East so that we may
move into the new millennium with the

                                                                  White Paper Southeastern North Carolina

Description: Types of Real Estate Ownership in North Carolina document sample