Racial Housing Price Differentials in the U.S. Housing Market

Abstract

We report evidence from the largest study of racial price differentials in the U.S. housing market, constructing a panel of 40 million repeat-sales transactions. We find that price premiums facing Black and Hispanic homebuyers are ubiquitous and systematically higher in neighborhoods with a larger share of non-white residents. We find that non-white buyers purchase at a premium from sellers from a different group. Consistent with predictions from theoretical models (Becker, 1957), we find higher premiums in supply-constrained markets. Leveraging exogenous variation in racial segregation, we find that segregation increases price premiums paid by Black homebuyers.

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Sébastien Box-Couillard
Sébastien Box-Couillard
Ph.D. Candidate in Applied Economics

I am a Ph.D. candidate in Agricultural and Consumer Economics at the University of Illinois Urbana-Champaign. My research interests lie at the intersection of environmental and urban economics. I am particularily interested in interactions between inequality, discrimination, housing markets and natural disasters.

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