Exclusive: Home values by race, mapped

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).

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, and it's often difficult to report appraisal discrimination, though new policies aim to address that, Joseph says.

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.

By the numbers: 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.

• These figures have remained relatively steady over the last five years, per CFPB data.

High debt-to-income ratios and poor or nonexistent credit history are the largest reasons Black mortgage applicants are denied at a higher rate than other racial groups in the U.S., Urban Institute researcher Jung Choi tells Axios.

• Higher amounts of debt and delinquent payments are tanking credit scores and driving up that DTI ratio, she says.
• Compared to other groups, Black people are most likely to be unbanked, largely due to a lack of trust — spurred by predatory lending and discriminatory banking practices.

Between the lines: Higher mortgage rates are making the problem worse by increasing the amount you spend on debt each month, Choi says.

• The more debt you have, relative to your income, the less likely you are to be approved for a mortgage.