Homes in Cleveland’s predominantly black neighborhoods are appraised for nearly $20,000 less than comparable homes in white neighborhoods, a 20-percent difference locally, according to new research from the Brookings Institute.
Cleveland was just one of the 113 metropolitan areas examined in the report, which compared values in majority black and white neighborhoods while controlling for housing quality and amenities.
“According to our analysis, differences in home and neighborhood quality do not fully explain the devaluation of homes in black neighborhoods,” the study’s authors wrote.
Nationally, there was an average of $48,000 difference in home values in black vs. white communities. Locally, it was $19,154 on average.
Home ownership is a huge factor in generational wealth building and the gaps therein for minorities. Red lining, lending patterns and federal policies dating back to the early 20th century essentially cut African-Americans out of the picture. While that explains how we got here — here, in Cleveland, being one of America’s most hyper-segregated cities with all the economic and health disparities tied to segregation — the persistence of prejudice and racism have maintained and in some cases exacerbated those gaps. (Which is to say nothing of lending practices that look very much today like they did prior to 1964.)
“If properties in black neighborhoods were priced equally as those in white neighborhoods, black children coming of age in the 1990s and 2000s would have had much more wealth to draw upon to pay for things like private schooling, tutoring, travel, and educational experiences, as well as higher education and greater access to higher-scoring schools in the suburbs,” the study says.
“If we can detect how much racism depletes wealth from black homeowners, we can begin to address bigotry principally by giving black homeowners and policymakers a target price for redress. Laws have changed, but the value of assets — buildings, schools, leadership, and land itself — are inextricably linked to the perceptions of black people. And those negative perceptions persist.”
This article appears in Nov 28 – Dec 4, 2018.
“Undesign the Redline” is a really excellent exhibit currently up at Mt. Pleasant NOW Development Corporation about this issue. It’s free to visit, hope area decision makers can go take a look.
I would argue this is not about racism as the article suggests. Rather basic economic principles of supply and demand. There is a glut of supply as those neighborhoods tend to have higher vacancy rates. Demand is effected by the correlation of those neighborhoods and higher crime rates which suppresses the appetite for those with enough income to purchase homes in either neighborhood. Therefore, demand becomes depressed as a result which only fuels the oversupply as for the most part is fixed due to lack of new starts. Round and round we go.
And…lets not forget that these areas will be paying much less property taxes as a result of their lower property valuations. This is especially true after Budish and his cronies massively raised property tax valuations, especially for the Westside, drastically for 2019! So, who gets left holding the bag again for Budish, Taxin Jackson, and their never ending mismanagement of taxpayer funds? The property owner that has to work and take care of their property and pay the outrageous property taxes in this corruption-filled County! -Its way past time for these thieves to be recalled from office!!!
Recall in both Cuyahoga County and Cleveland is a pipe dream, as evidenced by our most recent elections, politicians like Jackson and Budish who have, and will continue to screw the taxpayers with obscene management malfeasance and cronyism were both re-elected by large margins, with nill competition for their public offices.
When you really think about it, who in their right mind would want these thankless jobs ?
So what is responsible for the difference between the national and local numbers?
Wow, are we poor,
Also I think it would be good to look at certain integrated communities and how the valuation comes out in areas of those communities that have predominantly black households compared with those areas in those communities that have white households such as Shaker Heights and Cleveland Heights will you have comprable housing stock and comfortable Community amenities and you’ll probably find the same trend