How Home Ownership Keeps Black Neighborhoods Poorer Than White Neighborhoods (Silver Spring: middle-class, short sales)

[Rakin]

Originally Posted by Matt2789

^^^ Our country use to have "separate but equal" schools for blacks and whites which were far from being "equal" and only succeeded in being "separate". When the government forced integration of the schools it improved the situation greatly for many blacks. I think the same effect would happen if we integrate these neighborhoods. The only difference will be that unlike the school situation where the government stepped in and forced the issue we will have to resolve our own issues with self-segregation of neighborhoods. Diversification is the key to changing stereotypes and opening the door to sharing the wealth.

I'd still like to hear how you can force neighborhoods to integrate and maintain a racial mix quota.

[Matt2789]

Originally Posted by Rakin

I'd still like to hear how you can force neighborhoods to integrate and maintain a racial mix quota.

You can't force it thus my comment "The only difference will be that unlike the school situation where the government stepped in and forced the issue we will have to resolve our own issues with self-segregation of neighborhoods". If people in these neighborhoods want their houses to appreciate at a higher rate there needs to be a concentrated effort to open up their real estate market to a broader audience than just "Black Only" as this is a limiting them in having a competitive market for houses to be bid up like in other areas (this can start to be accomplished in a number of ways from marketing campaigns and changing public sentiment toward "outsiders"). Would be impossible to force something like this it needs to come from people gradually deciding to live in more diverse neighborhoods. Until then those who do not learn from history are doomed to repeat it. Look at neighborhoods like Shaw, Columbia Heights etc.. As those neighborhoods are becoming more diverse the black home owners are seeing their houses skyrocket in value. Yes, gentrification has it's negative affects as well but there can be a good middle ground if implemented correctly. As I also said earlier the positive side of neighborhoods that remain all black having repressed home sale values is that it makes the are more affordable for new 1st time black home buyers to purchase in an area they might be comfortable in. It's a double edge sword and that's just the reality of it. If someone else has a better idea I'd love to hear it?

[KLynch10]

Real Estate values only have to do with supply and demand. What keeps demand high in a community... good public schools, low crime, nice scenery, and great restaurants and retail.

Be incredibly involved when your kids are in the public schools, and encourage your classmates parents to do the same, establish a great relationship with the police, support your local businesses and got involved in projects in your community. Much easier said than done, but a great formula.

I live in a very safe part of Baltimore with surging property values and a top rated elementary school, and the schools have made a huge turnaround due to the hard work of the parents and good relationships with the principals, we have a terrific relationship with the local police department, volunteers are constantly doing projects around the community and fundraising for others, and the local businesses get tons of traffic. This is a majority white community, that was majority white when it was struggling as well, so I don't think race has a lot to due with improving a community.

[Quick Enough]

Originally Posted by justtitans

I shared this in another section of the website, but I thought the article would be relevant to Prince George's County as well as sections of DC, which both have many majority minority enclaves.

How Home Ownership Keeps Blacks Poorer Than Whites - Forbes


Thoughts?

Prince George's County is one of the most affluent black populations in the country.

[Matt2789]

Originally Posted by Quick Enough

Prince George's County is one of the most affluent black populations in the country.

Yes it does but I believe what this article is pointing out is that houses in black neighborhoods tend not to appreciate in value over time as much as houses do in "white" neighborhoods. This is regardless of whether the neighborhood is wealthy or poor. My opinion is that this is because black neighborhoods only attract other blacks regaradless of whether it is a rich or poor neighborhood (thus there is a smaller pool of buyers to compete against one another and drive prices up) whereas "white" neighborhoods tend to attract not only other whites but some minorities as well which in turn creates a much larger pool of buyers to compete.

[BigCityDreamer]

Originally Posted by UrbanScholar

Generally I agree with the article. By in large Blacks are not heavy investors or savers, nor do they typically maintain a diverse financial portfolio when it comes to wealth management. I find that most minorities have bought into the belief that purchasing a home is as being the only investment needed to quantify their wealth. Couple that with lower salaries, lower disposable household incomes, dearth of two-income households (especially those that are high earning) fewer amenities in in majority minority communities, ethnic perceptions and a litany of other factors, its easy to understand the disparity in value. I have always found it disheartening that the exact same house in Fort Washington is valued 50% less than one in Alexandria. Its a complex issue and one I don't see going away anytime soon.

Do you think that if more people in a given neighborhood invest and save a larger proportion of their own money, then that could have an effect in some way on the property values of that neighborhood?

I'm not sure if the article is trying to show a relationship between the two, since it discusses both of these issues.

[UrbanScholar]

Originally Posted by BigCityDreamer

Do you think that if more people in a given neighborhood invest and save a larger proportion of their own money, then that could have an effect in some way on the property values of that neighborhood?

I'm not sure if the article is trying to show a relationship between the two, since it discusses both of these issues.

Indirectly yes. The more savings/investments a person has, the more financially stable they will be. Having a "nest egg" would reduce the likelihood that they would have to live from month to month or default on a mortgage. This person could have more money available to them for general maintenance of their home and/or potential improvements (e.g. pride in ownership). If this person also patronizes businesses in their community, they increase the chance of those businesses flourishing and other businesses opening due to the demand. Aside from the aforementioned, there are other multipliers that occur as a result of wholesale wealth building within a given community.

Of course this couldn't happen with just one person, it would have to be a greater change within the community. There have been instance where predominately minority communities have been successful with self-sustainment (Rosewood, Fl, Greenwood OK) but I believe the shift in several social-economic factors has created a challenge in replicating that today (which would be a topic within itself).

[Quick Enough]

Originally Posted by Matt2789

Yes it does but I believe what this article is pointing out is that houses in black neighborhoods tend not to appreciate in value over time as much as houses do in "white" neighborhoods. This is regardless of whether the neighborhood is wealthy or poor. My opinion is that this is because black neighborhoods only attract other blacks regaradless of whether it is a rich or poor neighborhood (thus there is a smaller pool of buyers to compete against one another and drive prices up) whereas "white" neighborhoods tend to attract not only other whites but some minorities as well which in turn creates a much larger pool of buyers to compete.

I believe in what the article says. However, the OP pointed out PG County which I believe does NOT follow the national trend which is why I stated what I did about PG County.

I'd be willing to bet that there are MANY areas in the country that do NOT follow the article's premise.

[justtitans]

Originally Posted by Quick Enough

I believe in what the article says. However, the OP pointed out PG County which I believe does NOT follow the national trend which is why I stated what I did about PG County.

I'd be willing to bet that there are MANY areas in the country that do NOT follow the article's premise.

PG County housing value is still not as high as neighboring counties. It does not compare to Montgomery or Fairfax County, so despite the fact that PG County has a high income, compared to the rest of the area, it does not perform as well. If it did, then the premise of the article would not apply to our region.

For example, waterfront properties in Fort Washington can go for on average $300k-$600k, but just across the water in Fairfax County similar waterfront properties are going for well over a million.

What say you?

[bowian]

Originally Posted by justtitans

PG County housing value is still not as high as neighboring counties. It does not compare to Montgomery or Fairfax County, so despite the fact that PG County has a high income, compared to the rest of the area, it does not perform as well. If it did, then the premise of the article would not apply to our region.

For example, waterfront properties in Fort Washington can go for on average $300k-$600k, but just across the water in Fairfax County similar waterfront properties are going for well over a million.

What say you?

Regarding the Fort Washington waterfront example, I am curious as to whether property values were less than the Fairfax County waterfront when Fort Washington was majority white. More to the point, have property values in PG always lagged behind other counties in the DMV area, particularly before the county became majority black? If so, it appears that blacks who purchased, and are purchasing, in PG have done so at a historical disadvantage. And that should be part of the context of this discussion.