Andre Perry, Laura Lee Raymond, 50% discussed on All Things Considered

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Of the Tulsa Race massacre and in his speech Laying down a marker of sorts on the systemic racism in this economy, the president announced a couple of things he wants to do to try to narrow the racial wealth gap, a gap that has the average black family in the United States. Having just 1/10 of the net worth. The average white family on the president's list proposals to reduce racial discrimination in housing and increasing black home ownership, and his market places him at the field reports one key way the Biden administration plans to do that. Is by addressing the real racial disparities in home appraisals. Homeownership is one of the key ways for people to build wealth in the U. S. But white Americans are much more likely to own homes than black or Latino. Ex Americans and their homes were also worth more, says Junior Howell, a sociologist who studies housing appraisals. Homes in white neighborhoods are worth on average, almost $250,000 more. Incomparable homes and similar black and Latin ex communities. One major reason for that, Howell says, is that homes in predominantly white neighborhoods are often appraised to be worth more than comparable homes in predominantly black or Latino ex neighborhoods. And the racial inequality and appraisals is growing. Over time, The gap nearly doubled between 1980 2015. Because one of the main factors appraisers consider in determining how much a house is worth is how much other comparable homes nearby have sold for recently, and after years of redlining, segregation and other forms of housing discrimination, Andre Perry at the Brookings Institution says When you compare homes to others in neighborhoods have been discriminate against essentially recycled discrimination over and over again. It's a vicious cycle. He Laura Lee Raymond at Georgia Tech says that can really determine how much wealth you accumulate by owning your home. And so that is going to contribute hugely to the wealth gap in this country because home equity is 50% of household wealth. Raymond says the Biden administration's plan to address racial discrimination and home appraisals is an important Step, but it doesn't necessarily make it possible for black households to become homeowners doesn't really do much about that. One thing that would Raymond says, would be some kind of down payment assistance. I'm Samantha Fields for marketplace. Lumber prices fell today, continuing a month long slide.

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