A house for sale in Richmond. (Sarah Vogelsong / Virginia Mercury)
A new report highlights how neighborhoods in Richmond have lost portions of their Black residents over the past decade.
Richmond Councilwoman Ellen Robertson, who represents the sixth district, commissioned the report from Housing Opportunities Made Equal (HOME). It shows how Richmond’s home values correlate with the racial composition of neighborhoods; houses in areas with 30% or more Black residents are worth 17% less on average than houses where Black residents make up 30% or less of the neighborhood.
“This report demonstrates that housing is not a level playing field for Black and white Richmonders,” said Thomas Okuda Fitzpatrick, HOME’s director. “Too often in Richmond and across our region, housing is not a symbol of the American dream, but a driver of inequality.”
According to the report, the average home appraises for around $436,000 in majority white neighborhoods, in juxtaposition to $256,000 where people of color are the majority of residents.
But some Black-owned homes have never had equitable assessments in the first place due to the nation’s history of racist housing policies. In the 1930s, appraisers lined Black-populated neighborhoods nationwide in red and deemed them “hazardous” areas for home loans. The effects can still be present today, the report shows, because each past appraisal became the basis for future appraisals.
Additionally, the report notes human bias as another factor for disparity in home appraisals. This is when appraisers overlook comparable homes with different racial demographics or allow personal prejudice to prevent them from making objective consideration of a home’s attributes. This is something the report said is “exacerbated by a notable lack of diversity in the appraisal workforce.”
Biased lending is a major barrier to Black homeownership in Virginia, still
The report used metro-area research from the Brookings Institute as well as city tax assessment data and American Community Survey data. Meanwhile, Virginia Community Voice conducted 50 interviews with homeowners in Black-majority neighborhoods for anecdotal insights.
Regina Leftwich said that she didn’t believe she could get a fair price if she were to sell her home.
“I would definitely have an intermediary to do those negotiations,” she said. “ Because I’m a single woman and because I’m an African American, people don’t think that I am knowledgeable as to what I have and that I’m just ready to give it up, to give it away.”
Meanwhile, Mary Bryant believed the gradual improvements she’s made on her home over the years could contribute to getting a good deal should she sell her home.
“You can’t own a home and not go through some kind of improvement,” Bryant said.
She was among the majority of surveyed residents who believed they could sell their home for more than they paid for it and that the profit margin would be acceptable.
But the report noted that there’s an opportunity for public outreach to raise awareness about “systemic, rather than individualized, nature of bias with respect to home values and neighborhood demographics.”
Many interviewees expressed concern over rising property taxes, the changing demographics in their neighborhoods and “constant harassment to sell their homes for unreasonable low prices.”
Meanwhile, a concern for renters is that landlords will continue to raise rents to capitalize on higher property values.
To combat the inequities, the report suggests some actions that Richmond could take. Proposals include zoning changes that could allow for more housing stock and affordability, maintaining a repayment plan with tax-delinquent homeowners, as well as supporting fair housing education and investigations to prevent discrimination.
Robertson said in a statement that the report is “an urgent reminder of what we must do to retain long-time residents and ensure fair housing values that give all Richmonders equal opportunities to build and sustain a financial legacy for their families.”
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