Mar 17, 2023 - Real Estate

Black-owned homes appreciated faster in Miami than rest of U.S.

Illustration: Sarah Grillo/Axios

Miami is a long way from closing its racial housing gap, but a new report shows that homes owned by Black families appreciated at a higher rate than the national average.

Driving the news: Black-owned home values in the Miami-Fort Lauderdale metro area increased 50% between January 2020 and January 2023, according to a Zillow analysis.

  • That's slightly higher than the 49% overall increase for all homes in the Miami metro area, and substantially higher than the national increase for Black-owned homes (42%).

Why it matters: Miami has a long history of racially-based housing discrimination, or redlining, according to the University of Miami's Housing Solutions Lab.

  • And many markets with the highest appreciation in Black-owned home values also have the highest mortgage denial rates for Black applicants, the analysis found.

Between the lines: The denial rate for Black mortgage applicants in Miami-Fort Lauderdale is about 16% — among the highest of the metros Zillow analyzed.

  • "The markets where Black homeowners have had the best success improving their household wealth and approaching equal footing with homeowners overall are also the markets where those trying to break into homeownership have the most trouble securing the necessary financing," the analysis states.

The big picture: Black-owned home values trail overall home values nationally, though the gap is narrowing.

  • In February 2020, a typical Black-owned home in the U.S. was worth about 83% of a typical home overall. That increased to about 85% in January 2023.

What they're saying: "Due to years of redlining and other forms of systemic discrimination, housing disparities between Black and white families persist," Zillow senior economist Nicole Bachaud said in a press release.

  • "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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