That’s how much more the average home in a White neighborhood appreciated in value between 1980 and 2015 compared to a comparable home in a community of color, a new study shows.
The average home value rose $225,000 to $370,000 in White neighborhoods and $31,000 to $125,000 in Black and Latinx neighborhoods, according to the study—released this month by researchers at the University of Pittsburgh and the University of New Mexico. In fact, the inequities are increasing, rather than decreasing, the research showed, despite expectations that socioeconomic inequality is shrinking and tolerance of racial diversity is improving.
“Addressing the inequality created by racialized home appraisals will require transforming the appraisal industry,” the authors wrote, saying contemporary appraisal practices such as the sales comparison approach play a bigger role than many would think.
Because of gaps between Black people and White people in wages, access to housing financing, lending, and access to education, the U.S. has missed out on $16 trillion in gross domestic product over the past 20 years, a study from Citigroup economists found.