According to a study conducted by Andre Perry, Jonathan Rothwell and David Harshbarger for the Brookings Institute, homes in majority-Black neighborhoods are valued at about half the price as comparable homes in neighborhoods with no Black homeowners. Differences in the structural features of the properties and neighborhood characteristics--such as higher crime rates, longer commute times, less access to desirable schools, and fewer well-rated restaurants--account for only about half of the undervaluation of homes in Black neighborhoods. Overall, owner-occupied homes in majority-Black neighborhoods are undervalued by $48,000 per home on average, amounting to $156 billion in lost wealth for these families--most of whom are Black.
As the report notes, this diminution of property values results in lower wealth accumulation for homeowners in these neighborhoods, which creates a self-perpetuating cycle where it is then more difficult for these property owners to start businesses, afford college tuition for their children, etc., etc.
Read the report: The Devaluation of Assets in Black Neighborhoods
(Like I was, you will probably be surprised by some of the metro areas with the most devalued homes in Black neighborhoods, as well as some of the cities with the least devalued homes.)
This is a very sad problem, an otherwise invisible but quite destructive privation inflicted upon African Americans. So what is the solution to this problem?
As the report notes, this diminution of property values results in lower wealth accumulation for homeowners in these neighborhoods, which creates a self-perpetuating cycle where it is then more difficult for these property owners to start businesses, afford college tuition for their children, etc., etc.
Read the report: The Devaluation of Assets in Black Neighborhoods
(Like I was, you will probably be surprised by some of the metro areas with the most devalued homes in Black neighborhoods, as well as some of the cities with the least devalued homes.)
This is a very sad problem, an otherwise invisible but quite destructive privation inflicted upon African Americans. So what is the solution to this problem?