Philadelphia Wants To Address Racial Bias in Home Appraisals

A Philadelphia city task force has issued a set of recommendations designed to eliminate racial discrimination in home appraisals. “In Philadelphia, homes in primarily Black neighborhoods are undervalued by an average of nearly $26,000, according to Redfin.” As Aaron Moselle writes for WHYY, appraisal bias matters because “This potentially cheats families out of generational wealth, while also making it harder for homeowners to refinance or secure a mortgage for a more expensive house.”

The consistent undervaluing of Black-owned homes could stem in part from the lack of diversity in the appraisal industry itself. “In Philadelphia, 95% of appraisers are white. The vast majority are men. And most of them live in the suburbs, according to the report.” Consequently, “There are calls to make the home appraisal industry more transparent, easier to break into for women and people of color, and more defined by knowledge of local markets — something task force members say is often missing from the appraisal process.”

The task force’s recommendations include funding and support for education at the local level, state legislation that would mandate fair housing training for appraisers, and more data that can illuminate appraisal bias. “This would include information about the appraiser, the appraisal itself, and the value of three comparable properties” that could help cities understand bias and evaluate the results of proposed solutions.