Mar 7, 2023 - Real Estate

Black-owned homes appreciate slower in Dallas

Illustration of a welcome mat with the inequality symbol on it.

Illustration: Allie Carl/Axios

Homes owned by Black families in North Texas have appreciated slower than Black-owned homes in other parts of the country, according to a new analysis by Zillow.

Why it matters: Dallas has a long, sordid history of housing segregation that the city has been trying to address with new policies.

Between the lines: Equal access to housing isn't just about finding homes. It's also about the ability to build wealth through appreciating real estate.

The big picture: The national racial home-value gap is the smallest it's been in the past two decades, per Zillow.

  • Despite being hit disproportionately hard by the pandemic, Black families' homes nationwide have appreciated more than any others since February 2020.
  • Black homeownership increased 2% from 2019 to 2021, compared with 1.3% for the nation at large, according to data from the American Community Survey analyzed by the Urban Institute.
  • Black women ages 45–54 and 75 and older saw the largest increase among Black homeowners during the pandemic, with 2.9 percentage points of growth, according to Zillow.

Yes, but: In Dallas, gaps in home values and home ownership are closing slower than the U.S. average, according to the Zillow analysis.

Context: The home-value gap across the country has dropped 2.5% over the last three years, according to Zillow. In some areas — like Detroit — it shrunk by 9 percentage points.

Zoom in: In Dallas, the home-value gap shrunk just 1%.

  • In Austin, it's even smaller, at 0.1%.
  • In some cities, like Los Angeles and Seattle, the gap actually increased.

By the numbers: The typical value of a Black-owned home in North Texas is $301,292, nearly $60,000 less than the overall typical value of local homes, per Zillow.

  • Black families in the Dallas-Fort Worth area are 31.7% less likely to own a home, compared with white families, according to the company's analysis.

The bottom line: "Due to years of redlining and other forms of systemic discrimination, housing disparities between Black and white families persist," Nicole Bachaud, senior economist at Zillow, said in a statement.

  • "Policies and interventions like expanding access to credit, building more affordable homes and finding new approaches to mitigate appraisal bias are keys to achieving housing equity."
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