Latinos, who will make up more than a quarter of the United States’ population by 2050, are often concentrated in areas that lack services ranging from adequate housing to health care, according to a recent report.
These disparities were among many highlighted in “The Economic State of Latinos in America: The Deferred American Dream,” a McKinsey & Company report that detailed the obstacles that slow or hinder the economic advancement of the 60 million Latinos who live in the United States.
“The challenges facing the Latin American community in achieving upward economic gains are only heightened by living in these deserts,” says Bernardo Sichel, partner at McKinsey and one of the report’s authors. “These deserts have an impact on a series of outcomes, such as health and nutrition, service options, productivity and budget. All of these factors are impacted by limited choices, the need to travel for resources, and higher prices for consumer goods.
Latin American families typically spend 71% of their income on groceries and other consumer items and services, but often struggle to find or access options.
“Latinos tend to live disproportionately in isolated and poor areas where they are cut off from the opportunities, services and consumer goods that most Americans take for granted,” said Rogelio Sáenz, professor in the demography department. from the University of Texas at San Antonio. “Latinos … also don’t have disproportionate access to parks, libraries, bookstores, high-quality well-funded schools and (and) banks,” said in an email.
Sáenz was unrelated to the McKinsey study.
Here’s what the McKinsey report found:
Among Latinos, 42%, or roughly 21.2 million, lived in a census tract that lacked affordable housing in 2019. Almost 9 in 10 of Latino residents in these communities lived in five states: California, Florida, New Jersey , New York and Texas. .
Latinos were 3.1 times more likely than their white non-Latino counterparts to live in these housing deserts, which the report defines as low-income communities where the number of affordable and available housing per 100 “extremely low” households is below the national level. .
►Job growth is slowing:‘Hiring is held back’: Economy added just 199,000 jobs in December as labor shortages persisted and omicron began to spread across the United States
► Stocks are slipping:Wall Street sees drop after mixed employment report and drop in tech stocks
Accessing health services is a challenge for many Latinos in the United States: 42%, or 21.4 million, live in neighborhoods that do not have enough medical providers to match the number of residents or are short of globally such services.
Latinos were 2.5 times more likely to live in a healthcare wilderness than their white peers, and these areas were often urban communities of Arizona, California, Florida, New York, and Texas , according to the report.
Food and groceries
Among Latinos in the United States, 15% live in low-income areas where supermarkets are hard to find. This is compared to 11% of non-Latino whites who live in low-income urban neighborhoods where the nearest grocery store is more than a mile away, or in rural areas where large numbers of residents have to walk at least. 10 miles to find a supermarket.
“Latinos tend to live in food deserts where they don’t have access to fresh fruits and vegetables,” says Sáenz, a professor at the University of Texas at San Antonio. “There are more likely to be convenience stores, liquor stores and other stores.… Because this is a captive market, the prices of these unhealthy foods are also higher. than in the most economically well-off neighborhoods. “
About 34.5 million Latinos live in areas where more than the average number of residents do not have bank accounts. Among underbanked or unaccounted households, 14% are Latin American compared to 3% of white households.
Latinos, as well as black Americans, are disproportionately represented among the unbanked and underbanked who are often deterred from opening accounts by high fees and mistrust of financial institutions. But not being banked can cost money and time, as consumers rack up check-cashing fees and have to find transportation to get money orders or pay bills in person.
Almost half of Latinos live in communities that have limited broadband access, which can make it difficult to perform tasks ranging from paying bills to distance learning.
Broadband deserts are defined in the report as census tracts where coverage is less than 80% per 1,000 households.
Nearly 3 in 4 Latinos in the United States live in counties where there are a lower-than-average number of retail supercenters or clubs that allow shoppers to purchase clothing, appliances, and more. products.
“Earning a fair wage is one thing,” the report says. “But what if you can’t afford to spend it on needed goods and services?” “