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Black Americans Pay More For Homes Than Any Other Group: Study Finds

A new study from MIT has found that Black Americans pay more for homeownership than any other group.

Black Americans, HomeownershipJoe Raedle / Getty Images

The study, conducted by Edward Golding, executive director of the MIT Golub Center for Finance and Policy, reports that Black Americans pay more for mortgage interest, mortgage insurance, and property taxes than other homeowners.

The disparities are as follows: $743 per year in mortgage interest payments, $550 a year mortgage insurance premiums, and$390 per year in property taxes. All-in-all this accounts for a $67,320 loss in retirement savings for Black homeowners over 30 years.

“The small differences compounding over the life of the mortgage and during homeownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

“While mortgage costs are determined by markets to some extent,” said Golding, “there is a great deal of public policy that influences these rates, especially as it impacts people of color. We can and should address these issues at a policy level and start now to eliminate the large wealth gap between Black and White homeowners that we created in part through our current mortgage system.”

Check out the paper for yourself here.

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Study Shows Black Americans Are Paying More to Own Homes

In a new study from MIT, it has been reported that Black Americans are often forced to pay more than any other group of individuals to own a home.

CNN reports that Black homeowners on average pay more in mortgage interest, mortgage insurance, and property taxes than other homeowners. Written by Edward Golding, MIT’s executive director of the Golub Center for Finance and Policy, the paper concludes that the vast difference between what Black homeowners and white homeowners pay indicates that it’s considerably more difficult for Black homeowners to accumulate wealth through ownership at the same rate as white homeowners. 

The differences between mortgage payments is $743 per year, mortgage insurance premiums $550 per year, and property taxes at $390 per year. Totaling $13,464 “over the life of the line,” the gap could result in up to $67,320 in lost retirement savings. 

“The small differences compounding over the life of the mortgage and during home ownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

Golding added that the “Black-white income gap of $25,800 is exacerbated by this ‘Black tax’ on homeownership.” The study also indicates that Black households aren’t getting as many opportunities to refinance their mortgages to lower rates, which has resulted in many Black households paying a further $475 per year more than white households.

“Nearly a quarter of the disparity in homeownership costs for Black homeowners is due to local property tax assessments,” the paper reads. “A fair homeownership system must reform these inequitable federal, state, and local policies.”  

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Black Americans are leaving their homes to start their own all-Black communities

This report is part of “Turning Point,” a groundbreaking series by ABC News examining the racial reckoning sweeping the United States and exploring whether it can lead to lasting reconciliation.

For now, the small parcel of land known as Freedom, Georgia, is just a campground on red clay under the hot sun. But for the Black Americans who are moving here, it’s a dream.

So far, about 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta. It’s their escape, they said, from the everyday racism that feels like a part of life in the United States.

PHOTO: About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

About 19 families, most of whom are from Georgia, have pooled their money to buy the nearly 97 acres of land in Wilkinson County, which is located about two hours south of Atlanta to establish Freedom, Georgia.

“We came together and we said, ‘You know what, we don’t like being slaughtered in the streets. We don’t like our children being there, being at the mercy of some psychopath that wants to tackle us and arrest us and bang our heads. We don’t want that. So how about we just come together and build our own,’” said Dr. Tabitha Ball, a licensed clinical psychologist from

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As Summerville park sees improvements, Black residents remember its cultural impact | News

SUMMERVILLE — Years ago, Doty Park near downtown looked drastically different when it was a huge hub for Black residents.

There wasn’t a community center. And baseball fields used to sit where tennis courts now stand. Those fields were typically filled predominately with Black residents from the Alston and Brownsville areas. 

Anthony Pinckney, a 58-year-old native Summerville resident, said his wife ran the concession stand. He used to drive around the park after the baseball fields were replaced, trying to remember the good days.

Louis Smith, another longtime Summerville resident, said being there in the 1980s and ’90s felt like a neighborhood experience.

“You probably had a lot of marriage proposals out there,” he said. “It was a cultural hub of the community.”

For decades, Doty Park was the home to the Carolina Dixie Youth Baseball League. It was a program where Black and White children in large numbers could gather and play baseball as a community. In 2020, a program of its scale doesn’t exist at the park. 

It started in 1969, the same year Dorchester County schools were ordered to integrate. Though there was a Summerville youth baseball league that invited all children at the time regardless of race, that league had cuts. It only made space for a select group of children.



Former students reflect 50 years after desegregation of Dorchester County schools

Most Black families chose to have their children play at Doty because it felt more comfortable. The league also gave children more opportunities since they didn’t have cuts.

This further diversified the Doty league, since some White parents weren’t comfortable with a cuts policy either.

“We didn’t want to hurt their feelings,” said Jerome Sanders, one of creators of the league at Doty. “We never cut children.” 

The Doty league no longer exists today, and some residents say the park doesn’t have the

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Homes in Black and Latino neighborhoods still undervalued 50 years after US banned using race in real estate appraisals | The Conversation

(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.)

Junia Howell, University of Pittsburgh and Elizabeth Korver-Glenn, University of New Mexico

(THE CONVERSATION) The Research Brief is a short take about interesting academic work.

The big idea

Racial inequality in home values is larger today than it was 40 years ago, with homes in white neighborhoods appreciating $200,000 more since 1980 than comparable homes in similar communities of color.

Our new research on home appraisals shows neighborhood racial composition still drives unequal home values, despite laws that forbid real estate professionals from explicitly using race when evaluating a property’s worth. Published in the journal Social Problems, our study finds this growing inequality results from both historical policies and contemporary practices.

In the 1930s, the federal government institutionalized a process for evaluating how much a property was worth. Often called redlining, this process used neighborhood racial and socioeconomic composition to determine home values. Homes in white communities were deemed more valuable than identical dwellings in communities of color.

Legislative action in the late 1960s and 1970s prohibited this practice. But the law allowed appraisers to use past sale prices to determine home values. Our research shows how using old, race-based sale prices ensured appraisers continued to define homes in white neighborhoods as worth more than similar homes in Black and Latino communities. Racism was baked into the system.

Real estate professionals compound these historical inequalities by assuming communities of color are undesirable, even when real estate demand suggests otherwise.

Why it matters

For most U.S. families, their home is their greatest asset. As their home appreciates in value, their wealth increases, enabling them to fund their retirement, their children’s college educations or unexpected expenses like large medical bills.

The racial inequality in home values

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