“We found that after controlling for education, crime, walkability, and many other metrics you might find on Zillow, homes in black neighborhoods are devalued by 23 percent. About $48,000 per home, about $156 billion in lost equity. Now, that’s the money people use to start businesses and to send their kids to college. In fact, that would have paid for more than 4 million black-owned businesses, based on the average startup costs that blacks had to start businesses. They would have funded more than 8 million four-year degrees at a public institution. It’s the money that people use to uplift themselves.
So throughout history, black people have been denied housing opportunities and have been subjected to predatory lending and other unsavory practices that have really disenfranchised them. And so when these police incidents occur, a lot of this frustration comes from not having an ability to influence policy. And a lot of that starts with a lack of homeownership.”
“The devaluation goes beyond housing. We also did a study examining businesses in black communities. To get a sense of the quality, we scraped Yelp data from all businesses and compared those in black-majority communities and in white-majority spaces. We found a similar finding: Businesses owned by people of color in black-majority neighborhoods actually scored higher on Yelp, but received less revenue because of the neighborhood’s perception. People will bypass quality in black neighborhoods simply because it’s the black neighborhood.”