Black homeowners have lost $156B thanks to systemic undervaluation: report

Homes in majority black neighborhoods were also valued at $48K less than comparable homes in majority white neighborhoods, the study shows

TRD NATIONAL /
Nov.November 29, 2018 02:01 PM

(Credit: iStock)

Homeownership has been billed as a way to generate wealth for American families, but a new study shows blacks don’t reap the same financial rewards from owning homes as whites.

Owner-occupied homes in majority black neighborhoods are consistently sold or appraised at an average of $48,000 less nationwide than comparable homes in white neighborhoods, according to a new study from Brookings Institution and Gallup reported by Curbed.

That amounts to $156 billion in lost value for African-American homeowners.

The report, titled “The devaluation of assets in black neighborhoods: The case of residential property,” shows homes with similar features are valued at 23 percent less in black neighborhoods compared to areas with few black residents.

While majority black neighborhoods studied in the report show signs of disinvestment like inadequate public transportation and underperforming schools, such factors only explain about half of the undervaluation, the study’s authors said. The rest can be chalked up to “anti-black bias,” the report said.

The report is the latest showing black Americans face discrimination in housing.

Despite the overall denial rate for mortgage applications being the lowest in 20 years, black applicants are still twice as likely as whites to get denied for mortgages. Minority homeowners also have been the recipients of a disproportionate number of subprime loans. [Curbed]Joe Ward


Related Articles

arrow_forward_ios
Realogy CEO Ryan Schneider (Credit: iStock)

Realogy’s plan to stop the iBuyers from gaining a foothold in Chicago

City to redevelop land near 95th Red Line Station, Chicago’s slumping housing market gets slight reprieve: Daily digest

City to redevelop land near 95th Red Line Station, Chicago’s slumping housing market gets slight reprieve: Daily digest

From left: One Bennett Park, 403 North Wabash Avenue, 1109 West Washington Boulevard (Credit: Related and Redfin)

Here are the priciest home sales in Chicago last week

Chicago ultra-luxury homes see major price cuts, more Sears closings: Daily Digest

Chicago ultra-luxury homes see major price cuts, more Sears closings: Daily Digest

Homes in Chicago's Archer Heights neighborhood (Credit: iStock)

Chicago Cheat Sheet: Chicago home value growth hits 3-year low, another suburban corporate exodus…& more

Michael Larsen and an aerial view of Chicago (Credit: Linkedin, iStock)

Amid Chicago’s luxury housing market lull, there is life in Winnetka

Alderman Roberto Maldonado (26th) and the 606 trail (Credit: Facebook, David Wilson via Flickr)

Alderman wants to downzone properties near the 606 to halt development frenzy

Perkins & Will architect Greg Tamborino and his winning prototype for the Disruptive Design Competition

Chicago’s next iconic starter-home could look like this

arrow_forward_ios