Study Finds Racial Disparity in Prices Paid for Similar Homes

hudimgA study by economists at Duke University finds that Blacks and other minorities tend to pay higher prices for homes than Whites who buy similar real estate. The study examined more than 2 million real estate transactions between 1990 and 2008. In comparing transactions for similar homes in the same neighborhoods, the data shows that Blacks spent between 3 percent and 4 percent more than Whites. While it may seem like a small percent, when the transactions are for six-figure real estate deals, the dollar differences can be large.

The study also found wide disparities depending on the cities where the transactions took place. Blacks paid 5.5 percent more than Whites for similar houses in the same neighborhoods of Chicago. But in California, the differences were about 1 percent.

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