06/09/2025
📰 APPRAISAL GAPS: STILL HURTING HOMEOWNERS OF COLOR
📌 2020–2023 Snapshot:
Majority-Black neighborhoods see home appraisals 21–23% below comparable white areas.
12.5% of Black-majority tract homes appraised under contract—compared to 7.4% in white tracts.
Although FHFA reports some improvement, a 3.8 pp gap persists in 2023.
🏘️ Why It Matters:
Under-appraising cuts into homeowner equity and halts wealth building—especially for Black and Latino families.
Home equity is often the primary wealth tool—so this gap reinforces systemic disadvantage across generations.
🛠 What’s Being Done:
HUD and FHFA’s PAVE task force launched reforms in 2022.
Federal agencies now mandate bias training, guidelines, and improved appraisal rules.
Early results show narrowing—but not elimination—of appraisal gaps.
⚖️ The Ask:
Lenders and appraisers: implement bias audits, train continuously, diversify the profession.
Policymakers: enforce anti-bias regulations and invest in equitable appraisal practices.
💬 Share if you believe EVERY homeowner deserves a FAIR appraisal.
