Currently Reading

Home Prices Climbed Most Rapidly in Communities of Color

Advertisement
Demographics

Home Prices Climbed Most Rapidly in Communities of Color


May 19, 2021
Suburb aerial
Photo: mozhjeralena | stock.adobe.com

While home values increased across the country since the onset of the pandemic, communities of color and majority-Black neighborhoods experienced the highest home price increases—but also experienced the most price drops. Typical home values increased 8% annually in December 2020 for 92% of the zip codes Zillow tracks, with one-third of the zip codes seeing a much faster home price growth of 8% or more. Half of those zip codes are communities of color, which experienced a 9.3% price increase on average and 10.3% in Black-majority areas, according to the Joint Center for Housing Studies of Harvard University. On the other end, prices increased 6.6% in neighborhoods where at last 90% of the population is White. 

The rapid pace of price growth in communities of color was not geographically confined. In 47 of the 50 largest markets in the country last December, average price growth in communities of color exceeded metro-wide price growth by 2.0 percentage points. In the Philadelphia metro, for example, the 51 zip codes where people of color represented at least half the population averaged 14.3 percent price growth in December, 3.5 percentage points higher than the price growth in all 353 Philadelphia metro zip codes. In Atlanta, prices in communities of color rose 10.6 percent, 1.4 percentage point higher than price growth overall.

Communities of color tend to have other distinguishing characteristics relative to majority-white communities. In the nation’s larger markets, for example, communities of color tend to have higher-than-average population densities, lower median incomes, lower home values, and a lower rate of homeownership than the metro area as a whole. Some of these characteristics—namely lower incomes and home values—have also been associated with higher home price growth since March 2020. For instance, home prices also rose faster than average in lower-income neighborhoods.

However, communities of color also experienced a much wider range of price appreciation. While typical home values have risen fastest on average in communities of color since the start of the pandemic, prices also continued to fall in many of these neighborhoods. Indeed, between 6 and 13 percent of neighborhoods tracked by Zillow experienced year-over-year home price declines in any given month during the pandemic. In December, prices declined in 6 percent of all zip codes and 7 percent of communities of color, including 12 percent of majority-Black neighborhoods.

Read More
 

Related Stories

Business Management

Epcon’s Paul Hanson on the Supply Chain, Franchising, and Active Adult Demand

Paul Hanson, of Epcon Communities Franchising, talks about active adult demand and what it's like to be a franchise home builder amid supply chain constraints

Housing Markets

Does Your Market Make the List of Best Cities for First-Time Buyers?

According to the National Association of Realtors, the share of first-time buyers today has decreased about 10% during the last decade.…

Demographics

Increases in Asian Households Disguises Inequality

Asian-headed households increased 83% from 2000 to 2019, but it does not represent the great economic divides within the group, says Zillow. The…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.