Tackling Home Appraisal Bias in Philly
Philadelphia Inquirer
Cherelle L. Parker, Gregory D. Squires, and Ira Goldstein
We’ve all seen the stories about Black homeowners who obtained higher appraisals once they “whitewashed” their homes by removing family photos, African American art, and other evidence that a nonwhite family resided in the home. Unfortunately, home appraisal bias has become a leading fair housing issue in recent years, both across the nation and in Philadelphia. These racial disparities in home appraisals then contribute to broader disparities we see in generational wealth between Black and white families.
On April 26, 2021, City Council held a public hearing on appraisal bias. Witness after witness (appraisers, Realtors, academics, industry representatives, and others) testified to the variety of issues that impact the fairness, transparency, and quality of home appraisals. We then formed a task force of practitioners and experts that convened several times over the past year. Concurrently, the federal government’s Property Appraisal and Valuation Equity (PAVE) interagency task force, created by President Joe Biden, was formed and coled by Housing Secretary Marcia Fudge and domestic policy adviser Susan Rice. PAVE issued its report in March.
The Philadelphia Home Appraisal Bias Task Force just released its report, which offers recommendations and actions at the city level. For instance, we suggest making the appraisal process more transparent so that biases can be spotted and addressed, educating appraisers and homeowners about appraisal bias, and hiring a more diverse group of home appraisers.
