Philadelphia metro's race gaps in home values, mapped
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Philadelphia homes owned by Black people are typically worth 28.3% less than those owned by white homeowners, per Zillow data shared with Axios.
Why it matters: Homeownership remains the biggest driver of the wealth gap, per the Department of Housing and Urban Development (HUD).
The big picture: The typical value of U.S. homes with Black owners ($291,000) is 18% less than those with white owners ($354,000), Axios' Brianna Crane reports.
What they're saying: "It's no longer a myth or legend that this happens," HUD chief of staff Julienne Joseph tells Axios.
- The appraiser workforce is majority white, according to HUD, and it's often difficult to report appraisal discrimination, though new federal policies aim to address both of those hurdles.
What's happening: Although racial discrimination in the sale, rental and financing of housing was outlawed in 1968, racism is still deeply embedded in every part of the buying process.
- People of color, particularly Black people, have a long history of being excluded from the mortgage market.
Zoom out: Nearly 17% of Black U.S. mortgage applicants were denied in 2022, compared to 6.7% of white applicants in that same period, per the most recent data from the Consumer Financial Protection Bureau.
Zoom in: That difference is also true locally, per a 2021 report from the Reinvestment Fund.
- And, mortgage lenders have settled claims and faced accusations of redlining and undeserving Black borrowers in the Philly region.
By the numbers: The typical home value for Black homeowners in the region is $261,000 compared to $364,000 for those owned by white people.
- The Black homeownership rate in the Philly metro also trails white homeowners, 48.1% to 75.2%, respectively, per Zillow.
Between the lines: Black homeownership has been declining locally over the past three decades.
- It fell to below 50% after 2010 — the first time since 1970.