Valuing Homes in Black-Majority Neighborhoods
Over 3.2 million owner-occupied homes in metropolitan majority-Black neighborhoods across America have been collectively devalued by $156 billion. The devaluation of homes in neighborhoods reflects the systemic and ubiquitous racism in the U.S. housing market. This bias prevents homeowners from realizing the full value of their homes, depletes the wealth of majority Black neighborhoods, and undermines the strength and resilience of those communities.
When compared to similar quality homes in neighborhoods with similar amenities, homes in neighborhoods are worth, on average, 23 percent less. Across all majority Black neighborhoods, owner-occupied homes are undervalued by $48,000 per home on average.
To confront this problem, we are developing a $1 Million Innovation Challenge to foster a new generation of both policy-based and market-driven structural innovations that target bias in the housing market.
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