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Title: Race and Home Price Appreciation in the United States: 1992–2012

Citation Type: Miscellaneous

Publication Year: 2018

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Abstract: Do homeowners of different racial and ethnic groups experience different rates of home price appreciation? I study this question by linking transaction-level repeat sale home price data to demographic information disclosed under the Home Mortgage Dis- closure Act. I find that, after flexibly accounting for differences in income, commuting zone, and the timing of purchase and sale, black homeowners experience apprecia- tion that is 2.5 percentage points lower than their white counterparts; the analogous Hispanic-white gap is 1.5 percentage points. I then document that homeowners of different races and ethnicities, but the same incomes, select homes in neighborhoods with very different characteristics along dimensions that are correlated with home price appreciation, such as racial and income makeup. However, I show that flexibly con- trolling for all of these factors still leaves an unexplained black-white appreciation gap of 1 percentage point, and a Hispanic-white gap of about 0.5 percentage points. Fi- nally, I show that these gaps vary widely across commuting zones, but in ways that are generally not correlated with other salient economic attributes of the commuting zones, such as interracial income mobility gaps.

Url: https://scholar.harvard.edu/files/nhipsman/files/housing_race.pdf

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Authors: Hipsman, Nathaniel E

Publisher: Harvard University

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Race and Ethnicity

Countries: United States