TheLoop21.com

By: Devona Walker (Add to your loop)
Wed, 10/15/2008 - 01:00

More and more 'for sale' signs are going up in Baldwin Hills.

(Read more of our stories about the Covenant with Black America.)

Baldwin Hills is one of the most affluent black communities in the United States. Most of its residents make at least $50,000 per year, well above both national and state averages, and roughly three-fourths of its residents are black.

Homeowners there, though well-heeled, are in no way immune to the faltering economy. California's economy, like most states', had been bolstered by strong real estate sales and strides in the financial services sector. When the real estate market went south, it was the first to begin feeling the pain.

California, making up about 15 percent of the total U.S. Gross Domestic Product, is in many ways the canary in a coal mine for the rest of the nation. And some might argue that Baldwin Hills serves as a similar indicator for black folks in America.

"People are selling their homes," said Denise Johnson, 54, who works in the Los Angeles District Attorney's office. "I've seen the 'For Sale' signs going up. Apartment complexes are up for sale. One couple bought a house on my block within the (last) year; they are now gone, and their home is up for sale. A lot of people I know are running into problems now."

Homes in Baldwin Hills are situated on the hillside like a multi-tiered wedding cake. At top, it is a bastion of modern architecture, looking down on the Los Angeles basin. At its base, there are apartment complexes and bungalows, with for rent signs and move-in specials hanging off the sides of buildings. In the commercial district that serves the community, many store fronts are vacant. (Read about how the businesses are facing the economy.)

"I own a duplex. My tenants work in tile. I can tell they are struggling," Johnson said. "They are working two and sometimes three jobs, but the people they work for don't always pay them on time, and the work is not dependable. They are still making the rent. But I worry that soon they won't be able to."

Georgia, another state with a strong, black middle class, lost 26,200 jobs in August, more than any other state in the nation, according to the U.S. Labor Department. Its unemployment rate surged to a 15-year high of 6.3 percent, putting it above the national average for seven straight months, the longest period in three decades. Its labor commissioner said the downfall has been a culmination of factors, such as the housing crisis, the credit crunch, the outsourcing of manufacturing jobs and rising gas prices. It's all strangling the state's job market.

In Prince George's County, Maryland, another well-known enclave for the black middle class, a forum was recently held to figure out how it could best handle the economic downturn.

Maryland is giving the county $10 million to battle a growing foreclosure problem there.