This is true for other Black communities across the country, where homes can be undervalued by as much as 65 percent. The 2019 Federal Reserve Survey of Consumer Finances shows that 45 percent of Black families own their homes, with a median home value of $150,000. And these gaps are directly linked to “redlining,” which has robbed Black families of generational wealth. Black neighborhoods — colored red — were deemed too risky for mortgage lending. The Federal Housing Administration, created in 1934, instituted a policy of not guaranteeing mortgages for Blacks, no matter how creditworthy they were.

Source: Washington Post October 23, 2020 09:56 UTC