September 8, 2021, 9:15 AM - 10:30 AM
Andre Perry, Brookings Metropolitan Policy Program
Homeownership lies at the heart of the American Dream, representing success, opportunity, and wealth. However, for many of its citizens, America deferred that dream. For much of the 20th century, the devaluing of black lives led to segregation and racist federal housing policy through redlining that shut out chances for black people to purchase homes and build wealth, making it more difficult to start and invest in businesses and afford college tuition.
This session will outline the historical and contemporary context of how racism, racial exclusion, and predatory inclusion have limited housing opportunities and wealth-building for communities of color. Specifically, the talk will explain how much money majority-black communities are losing in the housing market stemming from racial bias, finding that owner-occupied homes in black neighborhoods are undervalued by $48,000 per home on average, amounting to $156 billion in cumulative losses. The impacts of devaluation on business development will be discussed. The presentation also identifies potential ways we can restore the value that’s extracted by racism.