San Jose, California-based Working Partnerships USA, a public policy institute based in the Silicon Valley, released a report Thursday, saying its high-tech community is dealing with a shrinking middle-class and a dramatic increase in foreclosure activity.
According to the group’s statistics, foreclosure filings in Santa Clara County jumped 38 percent in 2006 as default notices were sent to 2,601 homes.

During a press conference, the group confirmed it had no specific research on the specific causes of the foreclosures, but did say the area’s overall proportion of subprime exotic loans is relatively low with only 14 percent of Silicon Valley home purchases in 2006 classifying as subprime.
Working Partnerships did note a significant increase in subprime loan purchases in the Latino population.
“If you look at specific communities, in particular Latino homebuyers, 44 percent of Latino homebuyers received subprime loans,” a spokesperson with Working Partnerships USA said. “And, in a lot of the statistics from around the country often Latinos received subprime loans when they would have qualified for loans at the prime rate.”
Other notable statistics from the report include:
— Silicon Valley has 150,000 fewer jobs than it had in 2001.
— From 2000 to 2005, the median Santa Clara County household saw its real annual income fall by $9,011.
— Only 49 percent of Santa Clara County graduating high school seniors enrolled in college in 2005.
— The cost of living, which includes health coverage costs, childcare, and gas, rose dramatically