Redfin: Homes in Black Neighborhoods Undervalued by $46K

Dated: April 29 2021

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Homeowners in primarily Black neighborhoods also started with less equity than Asian ($178K), Hispanic ($35K), and white ($63K) homeowners in 2019, before COVID-19.

SEATTLE – In an analysis of more than 7 million homes sold between 2013 and the beginning of 2021, Redfin found homes in Black neighborhoods are undervalued by an average of $46,000 compared to homes in primarily white neighborhoods.

Only 44% of Black Americans own the home they live in, versus 74.5% of white Americans. Black families who do own their homes have less equity than those of other races, with a median home equity of $89,000 in January 2021 versus $113,000 for white families, said Redfin. That is the lowest median equity among the four races represented in Redfin's March study.

Homeowners in primarily Asian neighborhoods reported $257,000 in median equity, and homeowners in primarily Hispanic neighborhoods reported $102,000 in median equity.

Homeowners in primarily Black neighborhoods also started with less equity than Asian ($178,000), Hispanic ($35,000), and white ($63,000) homeowners in 2019, prior to the outbreak of COVID-19.

Redfin reported the value gap between homes in Black and white neighborhoods has held relatively steady over the last eight years. Homes in primarily Black neighborhoods nationwide were valued at an average of $41,000 less than comparable homes in primarily white neighborhoods in 2020, compared with a $46,000 devaluation in 2013.

Redfin Chief Economist Daryl Fairweather said that "no real progress" on the racial home-value gap has been made over the last decade, which highlights the depth of the problem and how difficult it is to change. 

Source: HousingWire (04/20/21) Glaze, Tim

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Absolutely ridiculous. Minority homes and homeowners matter too.  #equality #appraisers #appraisalmanagement #minorityhomeowner #blackcommunity #blackhomeowners #realtorinsouthfl

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Roxanne Dixon

Highly motivated Real Estate Agent with over 8 years of diverse experience in residential(Purchase/Sale), commercial and investment(Annual Rental, Airbnb, Property Management) estate. Strong analytica....

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