Dec 1, 2022 - News

A $5 million effort aiming to address racism in home appraisals will launch in Charlotte

Photo: Bri Crane/Axios

Wells Fargo is partnering with the National Urban League to spend $5 million on a new initiative that aims to certify and train diverse appraisers in order to combat discrimination in home appraisals.

Charlotte is one of the three cities the program will launch in, along with Atlanta and Houston, the two organizations announced in a press release Thursday.

The big picture: Homes in Black neighborhood are valued at 23% less than similar homes in neighborhoods with few or no Black residents, a 2018 Brookings Institution study found.

Why it matters: Home ownership is key to building wealth in the U.S., but disparate appraisals contribute to the wealth gap between Black and white families.

  • “Racial discrimination in the home appraisal industry is a significant barrier to economic equity,” National Urban League President and CEO Marc Morial said in the release.

Details: The $5 million will be allocated over five years and is expected to certify as many as 260 diverse appraisers in the three cities. In addition to their certification, the National Urban League will provide training and support for those in the program to develop businesses.

  • A Bureau of Labor Statistics survey indicates that 97% of appraisers are white, per the release.
  • Increasing diversity in the appraisal industry could help reduce the disparities in home values, some experts say.

Get more local stories in your inbox with Axios Charlotte.

More Charlotte stories