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(InvestigateTV) — High prices and rising interest rates are making it harder for Americans to buy a home – and in many places, an even bigger barrier is emerging: access to mortgages. “We just wanna help people, all people in Georgia have a right to good quality of life and to have communities and families that thrive,” said Liz Coyle, executive director of Georgia Watch, a statewide consumer advocacy organization focused on improving quality of life and consumer policy. “For too long, generation after generation – Black and Brown Americans – they’re deliberately redlined against. And barriers are put in place,” Coyle continued. “This is a systemic problem.” A new report from the Consumer Federation of America analyzed so-called “mortgage deserts” – communities where few homes are purchased with a mortgage – across the country. Coyle wasn’t surprised to see a community close to home at the top of the list. “Not only has Clayton County (Georgia) experienced being a mortgage desert – Clayton County and Metro Atlanta has experienced redlining going back to the 60s and unfortunately that’s still a factor in metro Atlanta today,” Coyle said. It’s not just Georgia. The CFA’s data shows both urban and rural areas nationwide suffering from this growing divide. “These are the top urban mortgage deserts in the country. In both places, around 50 percent of all homes were sold without a mortgage,” said Sharon Cornelissen, CFA’s director of housing and author of the report. “They’ve seen a lot of institutional investors – so large investment companies that buy up single family homes to rent them out but as a result it’s much harder to become a homeowner in those communities.” Cornelissen said mortgage deserts form for different reasons. In some areas, vacation homes are bought with cash. But more often, they appear in communities struggling with poverty and lower home values. “So, when homes are only worth $100,000 for example, or $120,000 on average – a lot of lenders don’t want to do business there because it’s not very profitable,” she noted. Cornelissen said both federal and state lawmakers need to invest in housing repair programs and expand mortgage financing if they want these deserts to disappear. For those struggling to obtain a mortgage, Coyle encouraged reaching out to local nonprofits and advocacy groups that can help navigate the process and identify alternative options for financing. Submit story tips to our Investigators Share errors or concerns with our Digital Editors Watch full episodes of InvestigateTV+ Subscribe to the InvestigateTV YouTube Channel
