A study of federal mortgage records from 2018 to 2020 showed that homes in majority Black or Hispanic neighborhoods were more likely to have their properties under appraised.
The study, conducted by ABC 7 in Chicago, showed that for example, 120 out of 1,000 homes in Black neighborhoods in Cook County were under appraised, compared to 102 out of 1,000 homes in Hispanic neighborhoods and 70 of 1,000 in white neighborhoods.
The article also explored the idea that the racial makeup of appraisers in Illinois could have a negative impact on appraisals. ABC 7 reported that 92 percent of Illinois appraisers are white, while 4 percent are Black, 3 percent are Hispanic or Latino, and 1 percent is Asian.
The report acknowledged that Illinois REALTORS® organized a study of racial bias in appraisals last year and is advocating for policy solutions. Illinois REALTORS® CEO Jeff Baker said, “It’s important to understand the scope of the problem in the sense of the impact it can have on homeowners. It robs so much wealth from our neighborhoods.”
Read more about the ABC 7 report.
Watch the ABC documentary, “Watch Our America: Lowballed.”
