Homeownership lies at the heart of the American Dream, representing success, opportunity, and wealth. However, for many of its citizens, America deferred that dream. For much of the 20th century, the devaluing of Black lives led to segregation and racist federal housing policy through redlining that shut out chances for Black people to purchase homes and build wealth, making it more difficult to start and invest in businesses and afford college tuition. Still, homeownership remains a beacon of hope for all people to gain access to the middle class. Though homeownership rates vary considerably between whites and people of color, it’s typically the largest asset among all people who hold it.
If we can detect how much racism depletes wealth from Black homeowners, we can begin to address bigotry principally by giving Black homeowners and policymakers a target price for redress. Laws have changed, but the value of assets—buildings, schools, leadership, and land itself—are inextricably linked to the perceptions of black people. And those negative perceptions persist.
Through the prism of the real estate market and homeownership in Black neighborhoods, this report attempts to address the question: What is the cost of racial bias? This report seeks to understand how much money majority-Black communities are losing in the housing market stemming from racial bias, finding that owner-occupied homes in Black neighborhoods are undervalued by $48,000 per home on average, amounting to $156 billion in cumulative losses.
Housing Passing pro-housing legislation is only the first step in making housing more affordable
Julia Gill, Semida Munteanu, Jenny Schuetz, Sydney Zelinka
September 28, 2023
In the realm of residential property research, Andre M. Perry, Jonathan Rothwell, and David Harshbarger are recognized experts shedding light on the complex dynamics of homeownership in America. Their work, particularly the article dated November 27, 2018, delves into the profound impact of historical racial biases on the valuation of homes in Black neighborhoods. This trio, with Perry as a Senior Fellow at Brookings Metro, Rothwell as a Nonresident Senior Fellow, and Harshbarger as a Former Research Analyst, contributes valuable insights to the discourse on race, prosperity, and inclusion.
The article underscores the significance of homeownership in the American Dream and the historical impediments faced by Black citizens in realizing this dream. It explores the long-lasting effects of redlining and segregation, illustrating how these practices hindered Black individuals from accumulating wealth, starting businesses, and accessing education. Despite changes in legislation, the report contends that negative perceptions persist, impacting the valuation of assets in Black neighborhoods.
The central question posed in the research is: What is the cost of racial bias in the housing market? The study reveals that owner-occupied homes in Black neighborhoods are undervalued by an average of $48,000 per home, resulting in cumulative losses amounting to $156 billion. This data paints a stark picture of the economic disparities fueled by racial biases, emphasizing the need to address and rectify these issues.
The authors' expertise extends beyond this specific article, with Perry exploring topics such as majority-Black cities, income disparities, and the economic potential of historically Black colleges. Rothwell's work delves into economic development, while Harshbarger's contributions focus on demographic and population studies.
The broader context of their work encompasses issues related to housing infrastructure, children and families, demographics, and race in public policy. The trio's affiliation with the Brookings Metro and their involvement in projects like the Race, Prosperity, and Inclusion Initiative solidify their standing as authorities in the field.
For those seeking a deeper understanding of the intersection between race, real estate, and economic disparities, exploring the research and insights of Andre M. Perry, Jonathan Rothwell, and David Harshbarger provides a comprehensive foundation. Their work not only analyzes historical injustices but also serves as a call to action for addressing systemic biases in the housing market.
Introduction: My name is Domingo Moore, I am a attractive, gorgeous, funny, jolly, spotless, nice, fantastic person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
