Brookings Institution Report Shows How Racism Has Devalued Black Homes

A recent report from Brookings Institution has analyzed the real estate market in an effort to understand how much money predominately Black communities have lost in the housing market due to racial bias. Throughout the 20th century, racial segregation, mortgage redlining, and discriminatory federal housing policies have led to low homeownership rates among African Americans. This, in turn, has greatly impacted the racial wealth gap in the United States. The lower wealth threshold has made it more difficult for Black families to afford to send their children to college.

The results of the Brookings study show that homes in Black neighborhoods are devalued by an average $48,000. This means that homes in Black neighborhoods are worth 23 percent less on average compared to similar homes in predominately White communities.

In U.S. metropolitan areas, homes in communities with 50 percent or more Black residents are valued at roughly half the price as similar homes in neighborhoods with few or no Black people. Additionally, metropolitan areas with greater devaluation of Black neighborhoods are more segregated and produce more barriers to success for the Black children that grow up in those areas.

The full report, which includes an interactive map of the devaluation of Black homes in U.S. metropolitan areas, can be accessed here.

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