Institute for Urban Research...
New research shows that 50 years after laws were put in place to stop the use of race in real estate appraisals, homes in neighborhoods of color are still being undervalued.
New research into how a neighborhood’s home values are impacted by its racial composition reveals that appraisals were affected to a larger extent by race in 2015 than in 1980 — to the financial detriment of homeowners in majority-Black and majority-Hispanic neighborhoods.
Using Census Bureau data from 1980–2015, the study from Junia Howell and Elizabeth Korver-Glenn shows that during that period, homes in white neighborhoods appreciated in value, on average, almost $200,000 more than comparable homes in neighborhoods of color.
Primarily, the reason for the large disparity lies in “contemporary appraisal practices,” according to Howell and Korver-Glenn; in particular, “the use of the sales comparison approach has allowed historical racialized appraisals to influence contemporary values and appraisers’ racialized assumptions about neighborhoods to drive appraisal methods.”
Howell, an assistant professor of sociology at the University of Pittsburgh, and Korver-Glenn, an assistant professor of sociology at the University of New Mexico — both of whom are former Kinder Scholars — summarized their study for the Conversation: TO READ MORE, CLICK HERE...