Zillow, April 25, 2018: Home values remain low in vast majority of formerly red ined neighborhoods
Home values in the vast majority of neighborhoods that were “redlined” as hazardous for mortgage lending by the federal government 80 years ago are lower now than in areas rated more highly.
A new Zillow analysis looking back to 1996 shows that at that time, the median home value in redlined neighborhoods was 47.1 percent that of the areas rated “best” – and the gap has worsened since then. The median home value in the “best” neighborhoods has risen 230.8 percent to $640,238 over the past 22 years, whereas the median value in the areas rated “hazardous” has climbed only 203.1 percent, to $276,199.
It’s a striking example of how discrimination – financial and racial – codified nearly a century ago continues to affect homeowners and whole communities.
