Unequal Returns to Housing Investments? A Study of Real Housing Appreciation among Black, White, and Hispanic Households

TitleUnequal Returns to Housing Investments? A Study of Real Housing Appreciation among Black, White, and Hispanic Households
Publication TypeJournal Article
Year of Publication2004
AuthorsFlippen, C
JournalSocial Forces
Volume82
Issue4
Pagination1523
Call Numberpubs_2004_Flippen.pdf
KeywordsConsumption and Savings, Demographics, Housing, Women and Minorities
Abstract

This paper assesses whether and to what degree housing in predominantly minority and integrated neighborhoods appreciates more slowly than comparable housing in predominantly white communities, and, if so, the extent to which inequality is due to neighborhood racial composition per se rather than nonracial socioeconomic and housing structure factors. I take a dynamic approach to the issue of neighborhood effects on housing appreciation, considering both neighborhood racial, ethnic, and income composition at the time homes are purchased and change in those characteristics over time. I examine differences in real housing appreciation across black, white, and Hispanic households by applying a hedonic price analysis to data from the Health and Retirement Study (HRS), combined with data from the 1970, 1980, and 1990 Census. I find clear evidence that housing in black and Hispanic neighborhoods experiences lower appreciation than comparable housing in predominantly white communities, and that increases in black representation also undermine housing values. While a large share of neighborhood appreciation inequality by racial composition is explained by nonracial (particularly socioeconomic) factors, racial and ethnic composition continues to exert a significant effect on appreciation even net of these considerations, particularly in highly segregated minority communities and those that experience large increases in black representation. And finally, I demonstrate the large negative impact of unequal housing appreciation on the overall wealth holdings of mature minority households, and discuss the implications for racial and ethnic stratificati

DOI10.2307/3598444
Endnote Keywords

Housing/Residential Segregation/Minority Groups/Social Inequality/Neighborhood Change/Economic Behavior/Black Americans/Hispanic Americans/Whites

Endnote ID

1268

Citation Key6904