Exclusive: Home values by race, mapped
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The typical home value of D.C-area homes owned by Black people is nearly 10% less than homes owned by white people, per data Zillow 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.
The big picture: The typical value of homes owned by Black people in the U.S. ($291,000) is 18% less than the typical value of homes owned by white people ($354,000).
What they're saying: Black homes appraising for less than their white counterparts isn't new. "It's no longer a myth or legend that this happens," Joseph, with HUD, tells Axios.
- The appraiser workforce is majority white, and it's often difficult to report appraisal discrimination, though new policies are aimed at addressing both of those hurdles.
Zoom out: 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.
- For example, up until 2021, lenders were required to assume those with student loans were paying 1% of the total balance every month, even if they were on a lowered, income-based repayment plan, HUD chief of staff Julienne Joseph tells Axios.
- It inflated debt-to-income ratios, even when that wasn't the reality of what the borrower was paying, Joseph says.
- And until September 2022, on-time rent payments weren't factored into a borrower's creditworthiness.
- Black people are more likely to be renters and use income-based student loan repayment plans, Joseph says.