Feb 22, 2024 - News

Homes owned by Black residents in Richmond are valued less

Difference in the typical value of homes owned by Black and white people, by metro area
Data: Zillow; Map: Erin Davis/Axios Visuals

The typical value of Richmond-area homes with Black owners is 13% less than homes with white owners, per Zillow data shared with Axios.

Why it matters: Homeownership remains the biggest driver of the wealth gap, per the U.S. Department of Housing and Urban Development.

  • And wealth is tied to quality of life metrics like education, health and employment.

By the numbers: The average Black-owned home in Richmond is valued at $314,200, while the typical value for homes with white owners is $361,000.

  • Nationally, the typical value of U.S. homes with Black owners ($291,000) is 18% less than the typical value of homes with white owners ($354,000).

The big picture: In Richmond, decades of discriminatory policies against Black families established a legacy of racial segregation that led to mortgage denials and a lack of housing opportunities, which continue to impact Black Richmonders today.

  • A 2022 Zillow analysis of Housing and Mortgage Disclosure Act data found that Black homebuyers in Virginia were nearly twice as likely to be denied mortgages as white homebuyers.
  • The homeownership rate among white households in Richmond was 75.1% compared to 49.6% for Black residents, according to a 2022 analysis of Census data from Stacker.

The bottom line: Black owners seeing their homes appraising for less than those of their white counterparts isn't new, reports Axios' Brianna Crane.

  • The appraiser workforce is majority white, and it's often difficult to report appraisal discrimination, though policies are aimed at addressing both of those hurdles, HUD Chief of Staff Julienne Joseph tells Axios.
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