The Federal Government Won’t Stop Home Appraisal Bias. Local Officials Can
ShelterForce
Ira Goldstein & Gregory Squires
As the election of 2024 has made painfully clear, elections have consequences. One of the consequences of the recent federal election is a shift in the government’s approach to fair housing, especially its enforcement of federal civil rights laws. This includes a shift of federal attention away from home appraisal bias.
In his budget request for Fiscal Year 2026, Trump proposed a 70 percent reduction in funding for HUD’s Office for Fair Housing and Equal Opportunity, for more than 50 years the primary federal fair housing enforcement agency. The House has requested a similar cut, while the Senate proposed level funding. HUD withdrew the Affirmatively Furthering Fair Housing Rule promulgated by the Biden administration, and Trump issued an executive order that would “eliminate the use of disparate-impact liability in all contexts to the maximum degree possible”—a vital tool in addressing housing discrimination.
One fair housing challenge that adversely affects housing providers as well as consumers is racial bias in home appraising. This issue had been ameliorated (to a degree) but not yet resolved by actions taken at the federal, state, and local level. But because the federal government is now in retreat, local communities must take up at least some of the slack. Philadelphia may be a role model for other cities.
Why focus on racial bias in home appraising?
