Financial Juneteenth — Homes owned by Black people have less value than similar homes owned by whites
By Marie S.
Today, as more Blacks are reaching success in their respective fields, their income consequently increases. But, why do studies show that Blacks, even with higher annual income levels than some whites, tend to have lower net worth?
Home ownership is a fundamental basis for the financial status enjoyed by the middle class. However, when a home is purchased by an African American, it brings with it certain underlying effects.
In a study conducted by the Brookings Institution in 2001, it showed that the value of homes owned by Blacks were 18 percent less than the value of homes owned by whites. An appreciation gap has been observed. Homes in neighborhoods that are predominantly Black do not appreciate as much as those in neighborhoods that are significantly white. The gap occurs when the Blacks in a neighborhood comprise more than 10 percent of its homeowners. The gap increases as the number of Blacks in the neighborhood increases.