Viewing a single comment thread. View all comments

PurpleWhiteOut t1_iys86io wrote

So which is better and which is worse? On the flipside people are worried about rising home prices and the higher taxes and gentrification that comes with that. If we fixed the biases, which imo we should, won't this also lead to a higher tax burden?

11

NoWarButMyWar t1_iysz4av wrote

Are you arguing in FAVOR of systemic racism because it saves you property tax?

−2

PurpleWhiteOut t1_iyt1brq wrote

Obviously not. I'm wondering if a change in this disparity would lead to further displacement. I know someone who has lived in a neighborhood her whole life that is now rapidly developing. Her property value has been shooting up and is having trouble with taxes, and it's honestly probably still undervalued.

4

Indiana_Jawns t1_iys8u9g wrote

High taxes are definitely better than continued institutional devaluation of minority neighbors that leads to a generational wealth divide. This is just modern day redlining.

−3

jorge1209 t1_iysb12b wrote

Appraisers don't set the market price, buyers and sellers do during transactions.

Appraisals depend on the other transactions in the area that closed. If the offer is way above that average the appraisal will come in low.

There is a reinforcement effect from low sales prices on comps to low appraisals to lower approved loan amounts back to lower sales prices. The way out of this cycle is "cash offers". When wealthy people come in and throw cash down, prices rise and appraisals do too.

Minority communities don't have the stock market wealth that other communities do. The last decade of rock-bottom rates has increased the wealth of the already wealthy faster than those whose we wealth is tied more to their family home.

It isn't redlining although it is a really problematic economic situation.

16

PurpleWhiteOut t1_iys93kd wrote

Of course I 100% agree and fixing this will create a ton of wealth. I can imagine it would come as a shock to people not trying to sell.

−1