One of the biggest drivers of the white-Hispanic racial wealth gap, the home value gap between homeowners of both ethnicities, still exists but the gap is narrowing.
According to a Zillow report, Hispanic-owned homes are currently worth 11.9 percent less than homes owned by non-Hispanic white households, down from 12.1 percent last year and a recent high of 12.4 percent in December 2021. The gap was as wide as 18 percent in 2012.
In Greater Hartford, the gap in home values between Hispanic homeowners and white homeowners currently sits at 15.1 percent. This is a 179-basis-point drop in the gap over the last five years and a 55-basis-point decrease year-over-year even as the metro-wide typical home value rose 8.2 percent by Zillow’s estimation year-over-year.
In New Haven, the housing wealth gap was 20.4 percent, down 107 basis points year-over-year and down 472 basis points over the last five years while the typical home market-wide rose 8.8 percent.
The gap was worst in Fairfield County – 28.9 percent – but also the most stable, down a mere 29 basis points over 2023 and 101 basis points over the last five years while the typical home market-wide rose 7.1 percent..
“Homeownership stands as a cornerstone for building wealth, yet systemic barriers have unfairly hindered many people of color from acquiring homes valued comparably to those of their white counterparts,” Treh Manhertz, Zillow senior economic researcher, said in a statement. “Efforts to improve access to down payment assistance, credit-building programs, zoning reforms, and affordable housing construction and preservation in desirable areas are key initiatives to help this progress continue.”
Commercial Record staff writer James Sanna contributed to this report.