Economic Architecture and The Brookings Institution are hosting the Valuing Homes in Black Communities Challenge and invite innovators with market- or policy-based structural innovations to apply.
In designing this challenge, we also wanted to share the wisdom of experts who have made important contributions to the understanding of the devaluation of homes in Black-majority neighborhoods.
Below are Economic Architecture’s Must Reads: articles, reports, and books that shine a light on key issues and may turn on a new lightbulb of ideas or understanding for you. Together, we can foster a new generation of market- and policy based structural innovations that value people over properties and build a more inclusive housing landscape for all.
1. “The devaluation of assets in Black neighborhoods: The case of residential property” by Andre Perry, Jonathan Rothwell, and David Harshbarger, The Brookings Institution (2018)
In 2018, Andre Perry, Jonathan Rothwell, and David Harshbarger quantified the devaluation of assets owned by residents in Black neighborhoods.
The publication of the report by The Brookings Institution issued a renewed call to address the structural issues in the housing market that reinforce and perpetuate the racial wealth gap.
2. “How Automated Valuation Models Can Disproportionately Affect Majority-Black Neighborhoods” by Michael Neal, Sarah Strochak, Linna Zhu, and Caitlin Young, Urban Institute (2020)
Will technology reduce bias or exacerbate the impact of past racial discrimination in the housing market?
In their 2020 report “How Automated Valuation Models Can Disproportionately Affect Majority-Black Neighborhoods,” Michael Neal, Sarah Strochak, Linna Zhu, and Caitlin Young’s findings suggest that the expanded use of AVMs could disproportionately affect Black-majority neighborhoods, which has policy implications.
The Urban Institute report also provides an important example of the critical role of research to inform the policies that will be needed to “ensure that as the use of AVMs increases, its costs are better understood and more progress is made to ensure that all households experience the benefits of homeownership.”
3. “Appraised: The Persistent Evaluation of White Neighborhoods as More Valuable Than Communities of Color” by Junia Howell and Elizabeth Korver-Glenn (2022)
“Do appraisers evaluate homes in white neighborhoods as more valuable than homes in communities of color?”
In their 2022 article, “Appraised: The Persistent Evaluation of White Neighborhoods as More Valuable Than Communities of Color” Junia Howell and Elizabeth Korver-Glenn explore this key question. Drawing on novel data from the Uniform Appraisal Dataset Aggregate Statistics recently released for the first time, Howell and Korver-Glenn evaluate neighborhood racial inequality in appraised values.
Their findings show that “Although explicitly referencing race as justification for an appraisal value is illegal, …neighborhood racial composition remains a key factor in how appraisers assign property values–even if it is not recorded on official forms.”
This report, along with prior research, reveals that the persistent inequality in home value across neighborhoods primarily stems from standard practices in the appraisal industry.
4. “Trading Equity for Liquidity: Bank Data on the Relationship Between Liquidity and Mortgage Default” by Diana Farrell, Kanav Bhagat, and Chen Zhao, JPMorganChase (2019)
“What if liquidity—not equity—is the real safety net for homeowners?”
In their 2019 paper, “Trading Equity for Liquidity: Bank Data on the Relationship Between Liquidity and Mortgage Default,” Diana Farrell, Kanav Bhagat, and Chen Zhao indicate that liquidity (cash reserves or access to liquid funds) is likely a stronger predictor of mortgage default than equity, income level, or payment burden, particularly for borrowers with limited liquidity.
Using data from JPMorganChase, the authors specifically found that “borrowers with little post-closing liquidity defaulted at a considerably higher rate than borrowers with at least three mortgage payment equivalents of liquidity after closing.”
Published by the JPMorgan Chase Institute, this paper advocates for more options providing homeowners with more liquidity.
5. “Dismantling Exclusionary Zoning: New Jersey’s Blueprint for Overcoming Segregation” by Fair Share Housing Center (2023)
Outdated zoning practices have perpetuated segregation and limited housing opportunities.
In their 2023 report “Dismantling Exclusionary Zoning: New Jersey’s Blueprint for Overcoming Segregation,” the Fair Share Housing Center explores how this happens and shows how New Jersey is leading the effort to change this.
Since 2015, the Mount Laurel Doctrine has led to the creation of more than 21,000 affordable homes, making strides toward racial and economic integration in some of the state’s most segregated communities. In this 2023 report, the authors highlight:
- The origins of exclusionary zoning and its deep ties to racial and economic segregation
- New Jersey’s 50-year grassroots movement that resulted in a groundbreaking series of court decisions requiring municipalities to provide their fair share of affordable housing
- The impact of enhanced enforcement since 2015, which has fueled the creation of 70,000 units of multi-family housing and significantly boosted affordable housing production
- Lessons from New Jersey that could dismantle exclusionary zoning nationwide, including key legal frameworks, enforcement mechanisms, and the role of sustained grassroots organizing
As other states grapple with their own housing crises, this report provides a clear roadmap for advancing housing justice and building more inclusive communities.
6. Know Your Price: Valuing Black Lives and Property in America’s Black Cities by Andre Perry, The Brookings Institution (2020)
Can we shift the narrative on inequality from blaming individuals for their circumstances to highlighting the need for structural change through policy and market innovation?
In his 2020 book Know Your Price: Valuing Black Lives and Property in America’s Black Cities, Andre Perry reveals a stark reality: Black neighborhoods are deliberately undervalued. The result? $156 billion in lost equity, holding back generations of Black families’ ability to build generational wealth.
Perry’s call to action is clear—it’s time for policies to work for Black families. This isn’t about “bootstrapping” or financial literacy, which are so often cited as solutions to overcoming racial disparities. Rather, it’s about changing the structures enabled by public policies that have historically excluded Black communities from opportunities. As Perry states, the “lack of opportunities for Black men and women demands innovation, creativity, and more options for family—not fewer.”
7. Evicted: Poverty and Profit in the American City by Matthew Desmond (2017)
Eviction isn’t just a consequence of poverty—it’s a significant driver of it.
Matthew Desmond’s Evicted: Poverty and Profit in the American City shifts the narrative around eviction. He shows how losing stable housing can trap families in a cycle of poverty, job loss, and increased debt. Individuals who experience eviction, for instance, often struggle to maintain steady employment due to the stress and instability that follow losing their homes.
Desmond also uncovers racial disparities in eviction rates. Black women, especially single mothers, are disproportionately affected. In Milwaukee, he found that Black women were 2.5 times more likely to be evicted than white women.
In Evicted, Desmond exposes how eviction is not simply an individual consequence but part of a larger, profit-driven structure that perpetuates housing insecurity. This book serves as a powerful call to rethink how we address eviction, urging us to go beyond temporary fixes or individual solutions. Instead, it demands structural innovations that tackle the root causes, such as reforming housing policies, reshaping landlord-tenant dynamics, and implementing equitable protections. This reframing underscores the need for structural change to break the cycle of poverty and ensure housing security for all.
8. “Homeownership is Affordable Housing” by Mike Loftin, Homewise, Inc. (2021)
In “Homeownership is Affordable Housing,” Mike Loftin, CEO of Homewise, Inc., highlights that homeownership often costs less than renting, especially over the long term— even for low-income households across racial ethnic groups.
For instance, for households with annual incomes of less than $50,000, renters spend an average of 33% of their income on housing, while homeowners spend only 24%. In some markets, monthly rents can even exceed typical mortgage payments for comparable homes.
Yet, barriers like down payment requirements keep many income-qualified families locked in the rental market.
Published by the Urban Institute, Loftin’s article pushes us to rethink the structural obstacles in our housing markets that exclude people who could own if policies and markets were more inclusive. By advancing structural innovations for down payment assistance or shared equity, we can support pathways to homeownership that foster stability and wealth-building for all.
9. “Fixer-Upper: How to Repair America’s Broken Housing Systems” by Jenny Schuetz, The Brookings Institution (2022)
17 million homes sit vacant across the US, while 44% of renters are cost burdened, spending more than 30% of their income on housing because of a shortage of affordable housing.
In “Fixer-Upper: How to Repair America’s Broken Housing Systems,” Jenny Schuetz points to this troubling paradox. These vacant properties, often located in disinvested areas, represent a huge opportunity to address housing shortages if revitalized and reintegrated into the market.
Schuetz examines how U.S. housing policies and local regulations, especially restrictive zoning in inner suburbs, have contributed to housing inaccessibility, reinforcing existing social and economic divides. She points out that these restrictive zoning laws limit attainable housing, disproportionately affecting groups like minorities, immigrants, and young adults who are seeking access to high-opportunity areas with quality schools and jobs.
She argues that housing challenges are more political than technical. Current policies favor existing homeowners in affluent suburbs, who benefit from property appreciation while blocking new developments that could provide affordable housing.
Schuetz advocates for policies that support the rehabilitation of these properties, supporting a housing system that goes beyond the “build-more” approach. By addressing underlying inefficiencies, updating zoning laws, and encouraging investments in existing housing, we can create a fairer and more sustainable housing market.
10. Shared Equity Map by Grounded Solutions Network (2022)
Momentum is building. The Grounded Solutions Network and its members are spreading community land trusts and shared equity models across the country.
The new shared equity mapping tool shows that there are now over 300 communities, with over 13,000 homeowners, over 85% of them first-time homebuyers,
Through a range of shared equity models—like Community Land Trusts (CLTs), limited equity cooperatives (LEC), and resident-owned communities (ROCs)— communities can secure long-term affordability and stability for aspiring homeowners, particularly for families with modest incomes. These models not only have the potential to foster community ties and build generational wealth but also create equitable housing opportunities that prevent displacement.
The Shared Equity Map showcases strong examples from across the country, illustrating pathways for shared equity homeownership to meet the needs of those often sidelined in the current market. From revitalizing underutilized properties to creating permanently affordable housing, these structural approaches demonstrate diverse strategies for making homeownership a reality for more individuals and families.
Explore the Shared Equity Map and discover how communities nationwide are advancing the vision of equitable homeownership. Learn more from the Grounded Solutions Network and CEO Tony Pickett.
11. The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein (2017)
It’s critical to remember that the segregation of our cities was the result of intentional government policies.
In his 2017 book, The Color of Law: A Forgotten History of How Our Government Segregated America, Rothstein shows that segregation was actively enforced through federal, state, and local government actions. This book is compelling not only in how it shines a light on the government’s role, but the sheer range of ways it has done so in creating and perpetuating residential segregation across the United States.
For instance, practices like redlining systematically denied loans to Black families, with over 80% of Black families excluded from home financing by the late 1930s. This exclusion contributed to long-lasting wealth disparities, as home equity remains a primary source of wealth in the U.S. Today, the median net worth of white households is approximately eight times greater than that of Black households, a gap that can be traced back to these discriminatory practices.
Additionally, public housing policies frequently reinforced segregation, isolating communities and limiting their growth potential. In cities like Chicago, public housing was often built in predominantly Black neighborhoods, perpetuating cycles of disinvestment and poverty. The legacy of suburbanization also reveals how post-World War II policies disproportionately benefited white families while systematically excluding Black families from opportunities in thriving suburbs.
Addressing these ongoing inequities requires a new generation of structural innovations in both housing policy and market structures. Rothstein emphasizes the importance of designing policies that not only confront past injustices but also create equitable pathways for home ownership and community investment. It is crucial to take decisive action in advancing these innovations to advocate for fair housing practices that promote racial equity and foster inclusive communities.
Valuing Homes in Black Communities
Homes in Black majority neighborhoods are undervalued by 23% on average compared to similar homes in other neighborhoods. Structural innovations that redesign our markets could create a more equitable housing market. To support new ideas, Economic Architecture and Brookings invite innovators to step forward and apply to the Valuing Homes in Black Communities Challenge.