Accepted version for publication – Housing Policy Debate (2018) 1 Heterogeneity in Income: Effects of Racial Concentration on Foreclosures in Los Angeles C. Aujean Lee (corresponding author) Abstract The United States continues to be defined by racial concentration, where most racial/ethnic groups live apart from each other. For homeownership, neighborhoods with large proportions of racial minorities is oftentimes linked to negative outcomes for minority homeowners, particularly during the Great Recession. However, middle- and upper-income ethnic neighborhoods, or resurgent neighborhoods, have grown in numbers due to a concentration of immigrants, federal policies favoring professionals, ethnic-specific resources, and affluence. In 2007, about 37% of Los Angeles Latino tracts were resurgent and 53% of Asian tracts were resurgent. This study finds that homeowners in resurgent neighborhoods had lower default/foreclosure rates and predicted probabilities than low-income neighborhoods. Asian resurgent neighborhoods had the lowest predicted probabilities of default or foreclosure, followed by Latino resurgent and White middle-class neighborhoods. There were also discrepancies among Asian neighborhoods based on nativity. Consequently, it is important to recognize that minority neighborhoods are heterogeneous, with differing impacts on homeownership opportunities when examined by class. Keywords: foreclosure, ethnic neighborhoods, immigration, segregation