Speaking in early January, President Joe Biden pointed out that the homes of Black Americans tend to be valued less than the homes of white families.
Homes, Race, and Value
At the Charleston Church in South Carolina, Biden addressed the racial wealth gap and racial biases in home appraisals. He said, “Today, a home owned by a Black family on one side of a highway, built by the same builder on the other side of the highway and a white guy living in it, the white guy’s home is valued more than the Black guy’s! I know you know it. And guess what, that’s how you build generational wealth.”
Can Biden Secure the Black Vote?
President Biden’s speech on racial issues in housing coincided with a critical period where he is striving to secure the Black vote, with many in this demographic reportedly shifting toward Trump for the upcoming election.
A Bloomberg review of polling conducted in the weeks before Biden’s speech showed Trump holding between 14% and 30% of the Black vote share, a notable increase from the 8% he secured in 2020.
“Such a racist & divider”
Greg Price (@greg_price11), the communications director for the conservative State Freedom Caucus Network, made a now-viral social media post about President Biden’s statement on X.
The post has sparked mixed reactions, with some accusing Biden of being a “divider” and others adopting a more lighthearted approach to express their opinions.
“It’s always about race”
A notable comment came from @TheJamesCrane, who expressed strong agreement with the notion that President Biden is not inclusive of all races. “It’s always about race with this guy. This guy is the most racist person to occupy the Oval Office since LBJ,” they wrote.
User @SeldenGADawgs chimed in, writing, “He’s such a racist & divider. This is not true. At all.”
Race-Tracking Tool?
Meanwhile, some users jokingly imagined a Zillow tool that would identify if a house is owned by someone white or Black. User @teslaboat questioned, “Does @zillow track race as criteria for value estimates?”
Breaking Down the Numbers
Recent studies have brought to light the impact of racial biases on the valuation of homes in predominantly Black neighborhoods. The Brookings Institute, a non-profit independent organization, released research in December 2022 indicating that homes in Black communities are valued approximately 21% to 23% lower than they would be in non-Black neighborhoods.
The study highlights that this devaluation doesn’t occur in neighborhoods predominantly inhabited by Latino, Hispanic, Asian American, or white residents.
What’s Behind the Home Valuation Gap?
The Federal Reserve’s findings clearly show the U.S.’s deep wealth divide. As of the third quarter of 2022, White Americans held assets totaling $124.5 trillion, in stark contrast to Black Americans and Hispanics, who had assets worth $8 trillion and $5.5 trillion, respectively.
Federal Housing Data
Researchers analyzing Federal Housing Finance Agency data have uncovered a significant racial discrepancy in home appraisals. Their findings show that homes in predominantly Black neighborhoods are nearly twice as likely to be appraised under the contract price compared to homes in mostly white neighborhoods.
Racist Attack and Home Appraisal Bias
This finding underscores the racial disparities in housing appraisals. It resonates deeply with the setting of President Biden’s speech — the very church where a white supremacist, Dylann Roof, committed a deadly racist attack in 2015.
White, Black, and Latino Households
According to the Federal Reserve’s “Survey of Consumer Finances,” there’s a significant wealth gap among racial groups in the U.S. White households had an average net worth of $952,910 as of 2019, compared to $140,520 for Black households and $192,170 for Latino households.
Racial Disparity in Employment
Employment rates also reflect a troubling trend. The joblessness rate for Black Americans was significantly higher at 5.4% in January 2023, compared to 3.1% for White Americans, according to U.S. Labor Department data.
This disparity affects savings and investment capabilities and impacts measurable earnings for Social Security benefits.
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