Home Value Disparities Between Races Are Slowly Narrowing
Typical home values for Black and Latinx-owned homes are lagging behind the typical U.S. home values, however, the gap has closed by close to 4 percentage points. Black and Latinx home values are worth 16.2% and 10.2% less respectively, according to Zillow.
Non-Hispanic white and Asian families have values of 2.9% and 3.7% higher than the typical U.S. home, according to Zillow. The report states that while a gap clearly remains, data points towards it steadily narrowing since facing large setbacks during the Great Recession. In March 2014, the gap for Black-owned home values grew from 15% to 20% while the gap for Latinx-owned homes reached 14%, according to the report. One Zillow economist believes that while the pandemic's economic impact was felt heavily by Black and Latinx communities, protections put in place by the Federal Housing Finance Agency and other policymakers will help keep the gap from widening once again.
"It has taken nearly a decade for the home value gap to return to pre-recession levels, but still, the gap remains very large," says Zillow economist Treh Manhertz. "With Black and brown communities and jobs hit disproportionately hard in the pandemic, there has been reason to worry another dip may be on the horizon that could slow or stop the progress. However, this is not the case, as the same factors that widened the gap in the Great Recession are not surfacing this time. Thanks to rock bottom rates on the most secure mortgages, extended forbearance programs, and rising home prices, there are no signs of another widening of the gap coming this year. However, through these turbulent times, continued vigilance and targeted intervention by policymakers is crucial to keep the progress going for communities of color."
Click here to learn more about the narrowing home value disparities among races.
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