Latinos and Blacks Pay More for Homes: Study

Uncategorized

0  Updated at 1:24 pm, April 26th, 2013 By: ABC Digital
Share This Story

Stockbyte/Thinkstock(NEW YORK) — Did you pay more for your home than you should have? Well chances that you did are higher if you are Latino or black, according to a new study out of Duke University.

Over the past 18 years, home buyers who are Latino and black paid 3.5 percent more than white home buyers for comparable homes in Los Angeles, Chicago, San Francisco and Washington, D.C.While Latinos and blacks are still less likely to own homes than their white and Asian counterparts, a significantly larger percentage of such minorities (47.4 percent of Hispanics and 45.1 percent of blacks) owned homes in 2011 than in 1995, according to Pew.  The study tracked more than two million housing transactions in those cities.

The Duke study controlled for factors such as income, wealth of the household, and access to credit, but still found that “none of those factors seemed to explain these differences” in how much more Latinos and blacks paid. Discrimination on the behalf of white sellers also didn’t seem to be a factor.

“Interestingly, we did not detect the pattern of obvious racial prejudice on behalf of the sellers. Black and Hispanic sellers sold at similar premiums to white sellers,” said Pat Bayer, the senior author of the study and an economics professor at Duke University.

So why might this difference exist? According to Bayer, it may have to do with age more than anything, because black and Latino populations skew younger, and are therefore more likely to be first time homeowners and less experienced at negotiating home prices.

What’s more, Bayer said in a Duke press release, is that “minority buyers are shown a more limited set of properties by real estate agents and may, therefore, feel like they have to pay more when they see a house that really suits their needs and tastes.”

Copyright 2013 ABC News Radio

Stories You May Be Interested In:

Facebook is coming to a TV near you

14 Feb 2017

Seth Fiegerman, CNN

Local processing plant suffers $100,000 in damages

21 Feb 2017

Natalia Hepworth, EastIdahoNews.com

Good Question: Could you get paid to become a drug informant?

22 Feb 2017

Robert Patten, EastIdahoNews.com