Analysis reveals racial disparities in NYC homeownership
AmNews Staff Reports | 12/3/2020, midnight
An analysis powered by artificial intelligence by SAS and the Center for NYC Neighborhoods reveals racial disparities in homeownership, home loans and foreclosures in the city.
The analysis showed that neighborhoods with a higher proportion of Black and Hispanic homeowners have lower home values, even when home age and square footage are the same.
Additionally, the findings revealed that the total cost of acquiring home purchase loans is higher for Black and Hispanic borrowers than for other races, even when controlling for differences in down payment and home value.
Financial institutions play a critical role in closing the racial wealth gap, and these findings could support their efforts to implement more data-driven policies. Through partnerships with nonprofits and other organizations, financial institutions can provide key lending decision data to identify similarities and disparities among various groups.