AUSTIN, Texas — A new report released on Wednesday found homes in majority-white Austin neighborhoods are appraised at triple the amount when compared to homes in minority-majority neighborhoods.
The report looked at homes with comparable amenities like schools, supermarkets, transportation, income levels, crime rate and housing plans, among other things.
Researchers found the average appraised value of a home in a white neighborhood in Austin is $873,758, and a similar home in a community of color is $318,496 on average.
"This inequality has increased dramatically over the last decade, particularly during the pandemic," said Junia Howell, a professor at the University of Illinois-Chicago who co-authored the study.
To put that into perspective, in 2019, the difference in the average values of homes in white neighborhoods and communities of color was just over $300,000. Last year, according to the study, it rose to more than $500,000.
"Latinx and Black neighborhoods are severely devalued compared to their white counterparts," Howell said.
While it is illegal for appraisers to explicitly use neighborhood racial composition as a justification for their appraised values, we have continued to see it worsen decades after that law was passed. Homes, no matter the area, continue to see a rise in prices. However, those in white neighborhoods are increasing at much quicker rates.
Brad Wilson bought his home in East Austin over a decade ago. He chose the area because it houses the most minorities.
"We wanted to go someplace that still had, you know, some diversity to it," Wilson said.
When Wilson and his wife bought his home in 2009, they were looking for something affordable. They ended up signing for about $100,000. He thinks part of the reason it was affordable was because of the minority-majority population.
He has no plans to sell his house soon.
"There's really no point in selling a house in Austin unless you're planning on leaving Austin," Wilson said. "We would make probably three times the money we put into it, but we'd have to spend that to find anything comparable … I'd have to move a lot farther out of town."
He knows, right now, he won't get a bang for his buck.
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