Source: Bankrate.com
It is well-documented that homes in Black neighborhoods generally appraise for less value than similar properties in predominantly white areas.
There’s no single explanation for this disparity, which is the result of hundreds of years of history and policy — as well as social biases — but it’s clear that the appraisal gap has a tangible impact on Black homeowners. The situation is even more acute in a real estate market stacked against buyers in the first place due to low inventory and high prices.
Black communities tend to be poorer than white communities, and that’s due in part to the lower values assigned to properties in those areas. Understanding the appraisal gap takes grappling with the history of real estate in America, and addressing it will ultimately mean dealing with its root causes.