NAR Report Paints a Different Picture
On February 23, 2022, NAR published the “2022 Snapshot of Race and Home Buying in America” report. The study examines homeownership trends and challenges by race and location to explain current racial disparities in the housing market. Using data from the 2021 Profile of Home Buyers and Sellers, the report looks at the characteristics of who purchases homes, why they purchase, what they purchase and the financial background for buyers based on race.
The study noted that for those who said they witnessed or experienced discrimination in a real estate transaction, nearly a third of Black respondents (32%) said they faced stricter requirements because of their race. That compares to 19% of White respondents, 16% of Hispanic respondents and 4% of Asian respondents. Approximately one-third of Black and White home buyers (32% each) and almost a quarter of Hispanic home buyers (23%) said they witnessed or experienced discrimination with the type of loan product offered. Nearly half of Black respondents (46%), Asian respondents (48%) and Hispanic respondents (50%) said they were steered towards or away from specific neighborhoods. That compares to 35% of White respondents. Approximately a fifth of Black respondents (19%) and White respondents (17%) said their purchase offer were denied for possibly discriminatory reasons.
The study also shows the appraisal was the LOWEST scored item on the list of discriminatory practices. 5% of Black respondents said they faced discrimination in home appraisal. That compares to 9% of Asian respondents, and 6% of Hispanic and White respondents. Of these respondents, how many of them met the appraiser in person? How could the respondents have faced discrimination based on race considering appraisers rarely meet the buyers to find out their race? These reported numbers even though the lowest on the list, appear to be inflated.
We suspect these findings will not be something that the Congresswoman Waters would want to see. Nonetheless, it’s an eye opener, and the picture gets really clear when you read the findings. We applaud NAR for making it public. We strongly suggest everyone reads it in it’s entirety. Piece it all together and the real picture emerges. Racial disparities in the housing market have little to do with the appraisal profession. Despite the fact that to hear the Congresswoman, one would think we appraisers, systemically and system wide, are all out here lowballing house values to oppress minorities just for the fun of it, and that we are the primary cause of the “wealth gap”.
The facts presented paint a picture so far removed from the false narrative that is being perpetrated against us. It’s night and day.
Neighborhood Residents and Discrimination in Transactions by Race/Ethnicity
|Black / AfricanAmerican||Asian / Pacific Islander||Hispanic / Latino||White/Caucasian|
|Ways you witnessed or experienced
discrimination in a real estate transaction
|Steering towards or away from specific
|More strict requirements for myself||32||4||16||19|
|Type of loan product offered||32||13||23||32|
|Purchase offer denied for possibly
|Refusal of home owner or agent to show
property to particular classes
|Appraisal of home||5||9||6||6|