News Number of the Day Number of the Day Shows Racial Disparity in Home Values Our take on the most relevant or interesting figure in personal finance today By Halley Bondy Halley Bondy Website Halley Bondy is a freelance journalist covering personal finance and a variety of small business topics for The Balance and outlets including NBC Know Your Value and Business Insider. She is an expert in startups, entrepreneurship, business financing, the U.S. economy, and investing. You can find her articles in NBC News, Business Insider, Lifewire News, Daily Beast, DAME Magazine, Eater NY, Bustle, Romper, The Outline, Oxygen, CMT, Vice, New York Daily News, MTV, and more learn about our editorial policies Updated on September 28, 2020 That’s how much more the average home in a White neighborhood appreciated in value between 1980 and 2015 compared to a comparable home in a community of color, a new study shows. The average home value rose $225,000 to $370,000 in White neighborhoods and $31,000 to $125,000 in Black and Latinx neighborhoods, according to the study—released this month by researchers at the University of Pittsburgh and the University of New Mexico. In fact, the inequities are increasing, rather than decreasing, the research showed, despite expectations that socioeconomic inequality is shrinking and tolerance of racial diversity is improving. “Addressing the inequality created by racialized home appraisals will require transforming the appraisal industry,” the authors wrote, saying contemporary appraisal practices such as the sales comparison approach play a bigger role than many would think. Note Because of gaps between Black people and White people in wages, access to housing financing, lending, and access to education, the U.S. has missed out on $16 trillion in gross domestic product over the past 20 years, a study from Citigroup economists found. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Oxford University Press. "The Increasing Effect of Neighborhood Racial Composition on Housing Values, 1980–2015."