whytheracecardisplayed
Jul 17, 20192 min
Updated: Oct 28, 2023
According to a report by the Center for American Progress, racial disparities in home appreciation have significant implications for African Americans’ equity building and the enforcement of fair housing policies. The report highlights that segregation and racial disparities in home appreciation put African Americans at a disadvantage in their ability to build equity and accumulate wealth. Source
The report also points out that despite the economic and political gains that African Americans have achieved since the passage of the Civil Rights Act, significant disparities still exist between African Americans and non-Hispanic whites in terms of access to homeownership, quality education, and employment, among other assets. Source
A study by Junia Howell and Elizabeth Korver-Glenn shows that homes in white neighborhoods appreciated in value, on average, almost $200,000 more than comparable homes in neighborhoods of color between 1980 and 20152. Another study by the Urban Institute found that homes are consistently appraised at lower values in neighborhoods with primarily residents of color than in neighborhoods with mostly white residents. These patterns are often attributed to the history of racism in home valuation. Source
The U.S. Department of Treasury also reports that research suggests neighborhoods with higher shares of Black and Hispanic residents have experienced lower real housing appreciation, and homes in those neighborhoods are more likely than homes in majority non-Hispanic white neighborhoods to be appraised at values below contract prices. Source
These findings suggest that there are significant racial disparities in home appreciation. It is important to address these disparities to ensure fair housing policies and equal opportunities for all. Source