SEATTLE, Jan. 5, 2021 /PRNewswire/ -- Typical values
for Black- and Latinx-owned homes still lag behind overall U.S.
home values, but the gap is narrowing. A new Zillow® analysis shows
homes owned by Black and Latinx households are worth 16.2% and
10.2% less, respectively, than the typical U.S. home -- gaps that
have closed by about 4 percentage points from their widest points
following the Great Recession.
Homes owned by non-Hispanic white and Asian families, meanwhile,
have typical values 2.9% and 3.7% higher than the typical U.S.
home.
While inequity in home values continues to persist, the data
show them steadily, albeit slowly, converging. Since homeownership
is the single largest driver of wealth for many households, the
value and appreciation of a home is extremely impactful for
families.
Before the Great Recession, the gap between Black-owned home
values and all home values was about 15%, but grew to 20% by
March 2014. Similarly, Latinx-owned
homes saw the largest home value gap in May
2012 at 14% -- 2 percentage points larger than before the
housing bubble. Now, nearly a decade later, home values for Black-
and Latinx-owned homes are back at pre-bubble levels, and continue
to narrow despite the current economic crisis.
One reason for the wide gap is that the housing bust hit
communities of color especially hard. Subprime loans were targeted
to take advantage of the most vulnerable communities, and the
ensuing wave of foreclosures hurt homeownership and home values
disproportionately for Black and Latinx homeowners. Fast forward 12
years, and homeownership rates and home values are still recovering
for these communities. While home value growth turned positive for
U.S. homes in August 2012, it took an
additional two years for Black and Latinx homes to see this same
growth.
"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."
Home value inequality varies greatly in different states and
metropolitan areas. Large metros with the smallest spread between
Black-owned home values are Riverside (1% value gap), San Antonio (3%), Las Vegas (3%), and Portland (4%). Among the most unequal are
Detroit (46% value gap), Buffalo
(43%) Birmingham (43%),
St. Louis (41%), and Milwaukee (40%).
Black homeownership rates are also on the rise since the Great
Recession, despite challenges for Black homebuyers to secure a
mortgage. Telework has the ability to expand the opportunity for
homeownership even further for Black and Latinx renters, providing
the flexibility to own a home in a less-expensive area.
Metropolitan
Area*
|
Zillow Home Value
Index
|
ZHVI for
Black-Owned Homes
|
Home Value Gap for
Black-Owned Homes
|
ZHVI for
Latinx-Owned Homes
|
Home Value Gap for
Latinx-Owned Homes
|
United
States
|
$262,604
|
$219,931
|
-16.2%
|
$235,943
|
-10.2%
|
New York/Newark,
NY/NJ
|
$505,569
|
$444,523
|
-12.1%
|
$458,474
|
-9.3%
|
Los Angeles,
CA
|
$726,379
|
$587,679
|
-19.1%
|
$551,079
|
-24.1%
|
Chicago,
IL
|
$255,532
|
$159,962
|
-37.4%
|
$213,016
|
-16.6%
|
Dallas-Fort Worth,
TX
|
$271,831
|
$221,932
|
-18.4%
|
$223,245
|
-17.9%
|
Philadelphia,
PA
|
$269,695
|
$207,440
|
-23.1%
|
$218,992
|
-18.8%
|
Houston,
TX
|
$229,613
|
$190,589
|
-17.0%
|
$196,079
|
-14.6%
|
Washington,
DC
|
$459,656
|
$430,736
|
-6.3%
|
$431,427
|
-6.1%
|
Miami-Fort
Lauderdale, FL
|
$312,574
|
$258,932
|
-17.2%
|
$308,280
|
-1.4%
|
Atlanta,
GA
|
$255,109
|
$216,927
|
-15.0%
|
$244,280
|
-4.2%
|
Boston, MA
|
$525,223
|
$443,914
|
-15.5%
|
$460,944
|
-12.2%
|
San Francisco,
CA
|
$1,126,793
|
$875,107
|
-22.3%
|
$909,903
|
-19.2%
|
Detroit,
MI
|
$195,270
|
$106,413
|
-45.5%
|
$154,686
|
-20.8%
|
Riverside,
CA
|
$411,728
|
$407,797
|
-1.0%
|
$393,359
|
-4.5%
|
Phoenix,
AZ
|
$315,045
|
$275,568
|
-12.5%
|
$254,695
|
-19.2%
|
Seattle,
WA
|
$567,205
|
$478,372
|
-15.7%
|
$518,693
|
-8.6%
|
Minneapolis-St. Paul,
MN
|
$310,357
|
$271,748
|
-12.4%
|
$288,169
|
-7.1%
|
San Diego,
CA
|
$649,474
|
$529,026
|
-18.5%
|
$545,204
|
-16.1%
|
St. Louis,
MO
|
$190,720
|
$112,529
|
-41.0%
|
$183,594
|
-3.7%
|
Tampa, FL
|
$240,308
|
$211,518
|
-12.0%
|
$230,762
|
-4.0%
|
Baltimore,
MD
|
$311,464
|
$269,153
|
-13.6%
|
$290,738
|
-6.7%
|
Denver, CO
|
$468,128
|
$412,917
|
-11.8%
|
$430,108
|
-8.1%
|
Pittsburgh,
PA
|
$174,771
|
$137,005
|
-21.6%
|
$224,108
|
28.2%
|
Portland,
OR
|
$442,464
|
$426,583
|
-3.6%
|
$421,170
|
-4.8%
|
Charlotte,
NC
|
$259,012
|
$218,607
|
-15.6%
|
$235,254
|
-9.2%
|
Sacramento,
CA
|
$458,805
|
$424,437
|
-7.5%
|
$431,496
|
-6.0%
|
San Antonio,
TX
|
$223,830
|
$216,275
|
-3.4%
|
$198,868
|
-11.2%
|
Orlando,
FL
|
$268,806
|
$242,226
|
-9.9%
|
$259,484
|
-3.5%
|
Cincinnati,
OH
|
$203,768
|
$166,450
|
-18.3%
|
$207,243
|
1.7%
|
Cleveland,
OH
|
$168,994
|
$101,824
|
-39.7%
|
$134,180
|
-20.6%
|
Kansas City,
MO
|
$220,301
|
$163,397
|
-25.8%
|
$185,913
|
-15.6%
|
Las Vegas,
NV
|
$305,073
|
$294,656
|
-3.4%
|
$274,878
|
-9.9%
|
Columbus,
OH
|
$225,835
|
$174,351
|
-22.8%
|
$209,033
|
-7.4%
|
Indianapolis,
IN
|
$200,366
|
$179,633
|
-10.3%
|
$178,652
|
-10.8%
|
San Jose,
CA
|
$1,236,298
|
$1,120,585
|
-9.4%
|
$951,612
|
-23.0%
|
Austin, TX
|
$366,297
|
$294,580
|
-19.6%
|
$313,708
|
-14.4%
|
Virginia Beach,
VA
|
$259,731
|
$245,226
|
-5.6%
|
$254,769
|
-1.9%
|
Nashville,
TN
|
$297,996
|
$269,767
|
-9.5%
|
$278,214
|
-6.6%
|
Providence,
RI
|
$342,548
|
$308,388
|
-10.0%
|
$309,296
|
-9.7%
|
Milwaukee,
WI
|
$202,012
|
$121,715
|
-39.7%
|
$165,441
|
-18.1%
|
Jacksonville,
FL
|
$246,484
|
$193,905
|
-21.3%
|
$244,903
|
-0.6%
|
Memphis,
TN
|
$167,904
|
$124,538
|
-25.8%
|
$145,730
|
-13.2%
|
Oklahoma City,
OK
|
$171,213
|
$142,051
|
-17.0%
|
$131,541
|
-23.2%
|
Louisville,
KY
|
$192,122
|
$141,855
|
-26.2%
|
$174,852
|
-9.0%
|
Hartford,
CT
|
$250,566
|
$205,037
|
-18.2%
|
$216,184
|
-13.7%
|
Richmond,
VA
|
$261,415
|
$234,525
|
-10.3%
|
$250,052
|
-4.3%
|
New Orleans,
LA
|
$217,016
|
$179,157
|
-17.4%
|
$213,635
|
-1.6%
|
Buffalo,
NY
|
$187,090
|
$106,690
|
-43.0%
|
$163,008
|
-12.9%
|
Raleigh,
NC
|
$299,764
|
$253,661
|
-15.4%
|
$272,773
|
-9.0%
|
Birmingham,
AL
|
$184,012
|
$105,272
|
-42.8%
|
$172,171
|
-6.4%
|
Salt Lake City,
UT
|
$418,763
|
$395,093
|
-5.7%
|
$358,700
|
-14.3%
|
*Table ordered by
market size
|
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make it easier to unlock life's
next chapter.
As the most-visited real estate website in the U.S., Zillow® and
its affiliates offer customers an on-demand experience for selling,
buying, renting or financing with transparency and nearly seamless
end-to-end service. Zillow Offers® buys and sells homes directly in
dozens of markets across the country, allowing sellers control over
their timeline. Zillow Home Loans™, our affiliate lender, provides
our customers with an easy option to get pre-approved and secure
financing for their next home purchase. Zillow recently launched
Zillow Homes, Inc., a licensed brokerage entity, to streamline
Zillow Offers transactions.
Zillow Group's affiliates and subsidiaries include Zillow®,
Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow
Closing Services™, Zillow Homes, Inc., Trulia®, Out East®,
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Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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