Bloomberg Highlights Racial Disparities in Home Appraisals
Bloomberg highlighted a new study by Junia Howell that looks at appraisals throughout the country to identify any racial disparities in the valuation of housing. The author uses data from the 2022 Federal Housing Finance Agency’s Uniform Appraisal Dataset Aggregate Statistics to arrive at the report’s findings that homes in predominantly white neighborhoods were valued nearly three times higher than homes in predominantly non-white areas. Even when other factors such as housing characteristics and neighborhoods are factored in, the report found that homes in white areas were appraised at more than $400,000 on average than similar homes in communities of color. As a result of racial disparities in appraisals, people of color are not able to access the same amount of capital as white homeowners. The report also found that the problem not only persists but is growing.
Bloomberg City Labs breaks down data from metro areas and highlights where the disparities are the greatest. Check out Bloomberg’s data and analysis here.