These are the facts that lawmakers and regulators must consider when seeking to end appraisal bias in communities around the country

*A 2021 Redfin study found that homes in Black neighborhoods are undervalued by $46,000 on average, a gap that has been constant over the past decade.

*When an appraisal is disputed, the burden is on the real estate agent or lender to provide data supporting a change in the valuation. But that rarely happens – less than 3% of appraisals are ever revised

*The appraisal industry badly needs diversity. In a Quarter 1 2019 report, the Appraisal Institute presented data showing that 4.4 % of appraisers are Hispanic and only 1.3 Black.

*According to a study by the Brookings Institution, differences in home and neighborhood quality do not fully explain the devaluation of homes in Black neighborhoods. Homes of similar quality in neighborhoods with similar amenities are worth 23 percent less ($48,000 per home on average, amounting to $156 billion in cumulative losses) in majority Black neighborhoods, compared to those with very few or no Black residents.

*A 2021 Freddie Mac study examining appraisals for home purchases the GSEs received from 2015 to 2020 shows that appraisals in Black neighborhoods are more likely to fall short of the contracted price than those in White neighborhoods even when taking structural and neighborhood characteristics into consideration

*Automated valuation modeled (AVMs) appraisals are increasingly used to limit potential racial bias in the process but could lead to systemic devaluation of black homes. Urban Institute researchers warn that AVM inaccuracy disproportionately affects majority-Black neighborhoods due to Blacks having lower home values on average ($169,855 in 2018, versus $424,810 in predominantly White neighborhoods.) They also tend to have older homes and different conditions than those of White neighborhoods.

NAREB annually releases a State of Housing in Black America (SHIBA) Report detailing the status of Black homeownership in the US. It identifies the barriers to homeownership frequently caused by structural racism. For more information visit: For more information visit: https://www.nareb.com/shiba-report/