The COVID-19 lockdowns in New York City have caused an exodus of people fleeing the city in search of an escape from the dense urban metropolis. Now, a recent report shows just how badly new property leases have been affected by the crisis.
In a new property report from Miller Samuel and Douglas Elliman, new leases in Manhattan between May 2019 and May 2020 dropped by an astounding 62 percent. Similar numbers were observed in Brooklyn and Queens, where the year-over-year change in May showed a decrease of 54 percent and 61 percent, respectively, in new leases.
This decrease in demand has been countered by a surge in available apartments. In Manhattan, the year-over-year change in new available apartments for May has increased by 34 percent, with similar numbers in Brooklyn and Queens. This is a record high for the Miller Samuel report, which started in 2006.
While prices have yet to see any significant drops, analysts predict more aggressive price drops for Manhattan apartments on the horizon as the real estate industry potentially reopens in June or July.
The racist 1930s-era housing policy continues to widen the racial wealth gap as homeowners in redlined areas have earned 52% less in home equity
Seattle, WA – June 11, 2020 (PRNewswire) (NASDAQ: RDFN) — The typical homeowner in a neighborhood that was redlined for mortgage lending by the federal government has gained 52% less—or $212,023 less—in personal wealth generated by property value increases than one in a greenlined neighborhood over the past 40 years, according to a report from Redfin (www.redfin.com), the technology-powered real estate brokerage.
Black homeowners are nearly five times more likely to own in a redlined neighborhood than in a greenlined neighborhood, resulting in diminished home equity and overall economic inequality for Black families. Chicago Redfin agent Brittani Walker said her hometown is an apt example of how redlining continues to contribute to segregation.
“It’s a tale of two cities in Chicago. It goes back to redlining, when Black residents lived in certain neighborhoods and white people lived in others, and the difference in home value and segregation between those places has been exacerbated by policy, education, wage inequality and so many other issues,” Walker said. “I hear the systemic problems every day when I talk to clients. Homebuyers have boundaries they’ve set for themselves, or a friend of a friend has set for them. They don’t want to buy in certain neighborhoods, especially on the South Side in formerly redlined areas, because those places don’t get the culture, the restaurants, the fun events, they don’t even get healthy food at grocery stores. And that contributes to why home prices don’t go up in those neighborhoods.”
The racist lending practice effectively blocked Black families from obtaining loans by assigning low mortgage security ratings to predominantly Black neighborhoods and color-coding them in red on maps. Though redlining was outlawed in the 1960s, it remains a major factor in today’s wealth gap between Black and white families across the country. Lack of access to credit, discrimination against minorities buying homes in greenlined neighborhoods, and being prevented from buying homes in their own neighborhoods led to significantly lower homeownership rates for Black families than white families. The national homeownership rate is lower for Black families than white families—44.0% versus 73.7%.
“More than half a century after it was abolished, redlining continues to dictate the racial makeup of neighborhoods and Black families still feel the socioeconomic effects of such a discriminatory housing policy,” said Redfin chief economist Daryl Fairweather. “Black families who were unable to secure housing loans in the neighborhoods where they lived have missed out on one of the major ways to build wealth in this country. And even families who were able to buy homes in their neighborhood after redlining ended haven’t earned nearly as much home equity as people who bought homes in neighborhoods that were considered more valuable.”
In Greenlined Neighborhoods, the Homeownership Gap Between Black and White Families Expands
Since 1980, the homeownership rate for Black families in greenlined neighborhoods dropped from 50.4% to just 44%, while the rate for white families rose 4.1 percentage points to 71% in 2017, which was the most recent data available during this analysis. That makes for a 27 percentage-point homeownership gap between Black and white families in “best” neighborhoods, up from a 16.5 percentage-point gap 40 years ago. The gap has widened in all neighborhood types except those that were formerly redlined, where Black and white families both have relatively low homeownership rates (29.8% and 45.6%, respectively).
“The expanding homeownership gap between Black and white families can in part be traced back to diminished home equity due to redlining, as it’s one major reason why Black families today have less money than white families to purchase homes either as first-time or move-up homebuyers,” Fairweather said. “It’s important to note that other factors play a role in lower homeownership rates for Black families, too. For instance, employment discrimination prevents Black workers from earning equitable income.”
In some areas, the difference is more pronounced. The homeownership rate for greenlined areas in Atlantic City, NJ is just 14.8% for Black families, versus 75.3% for white families. That’s a bigger gap than any other metro. It’s followed by Fresno, CA, where the “best” area homeownership rate for Black families is just 2.5% compared to 62.6% for white families, and Greensboro, NC (9.3% versus 67.7%).
Redlined vs. Greenlined: Identical Homes but Very Dissimilar Equity
In formerly redlined neighborhoods, the typical homeowner has earned $196,050 in home equity since 1980, versus $408,073 for greenlined neighborhoods. Homeowners in former “still desirable” and “definitely declining” neighborhoods have also missed out on sizeable home equity compared to those in greenlined neighborhoods.
While the median home equity in redlined neighborhoods has seen a bigger percentage increase since 1980 than those in greenlined neighborhoods—292% versus 204%—it’s largely because equity in redlined neighborhoods started out so low.
Here’s a look at national home equity gain for all four redlining categories, from the five-year period spanning 1975-1980 to 2019*.
Median Home Equity* in 1975-1980 (in today’s dollars)
Median Home Equity in 2019
Home Equity Growth (dollars)
Home Equity Growth (percentage)
Total Home Equity Growth (dollars)
Total Homes Sold 1975-1980
Type A / Best
$200,122
$608,195
$408,073
204%
$18.9 billion
32,845
Type B / Still Desirable
$129,195
$428,634
$299,439
232%
$47.6 billion
101,436
Type C / Definitely Declining
$93,732
$312,707
$218,976
234%
$62.1 billion
160,964
Type D / Hazardous
$67,100
$263,150
$196,050
292%
$22.5 billion
61,922
*Redfin measured median home equity in the period from 1975-1980, the furthest back in time data is available, by subtracting the loan amount from the sale price for homes in the 41 metros Redfin included in this analysis. Because a standard 30-year mortgage would have been paid off by 2010, median home equity in 2019 is equal to total home value.
Lack of Equity in Redlined Areas Pervades Across the U.S., With One Exception
Overall, 2017 homeownership rates are lowest for both white and Black families in former redlined neighborhoods. And home equity in former greenlined neighborhoods outstrips former redlined neighborhoods in 40 of the 41 metros in this analysis.
The starkest example of the imbalance is in Warren, MI (a Detroit suburb), where in 2019 the typical homeowner in a former A area had 1,309% more home equity than one in a redlined area—$634,000 versus $45,000.
Philadelphia is the only exception: The median home equity for the greenlined neighborhoods is 40% less than it is in redlined neighborhoods: $160,000 versus $268,000.
“Philadelphia is currently grieving over the deaths of George Floyd, Ahmaud Arbery, Tony McDade and Breonna Taylor and some neighborhoods such as Center City, and parts of West Philadelphia and Kensington have experienced damage despite otherwise peaceful protests,” said local Redfin agent Mason Gallik. “This may change some dynamics of the real estate market while neighborhoods recover. But as of a few months ago, some of the formerly redlined neighborhoods were among the most desirable areas in the city, like parts of Fairmount and Northern Liberties. Those neighborhoods have two things a lot of the former ‘best’ neighborhoods do not have: vacant land and proximity to downtown, both of which are valuable to modern homebuyers. Vacant lots in formerly redlined neighborhoods also allow for newly built homes, which tend to sell for more than older homes.”
New York and San Jose both have relatively smaller gaps in home equity gains between former greenlined and redlined neighborhoods. That’s likely because both are job centers with high wages and in-demand housing, and in each home prices have risen substantially in almost every neighborhood.
But rising home values throughout all redlining categories in New York and San Jose doesn’t mean Black Americans there have benefited. The Black homeownership rate in both areas is lower than the national average of 44%: just 32.4% in New York and 32.4% in San Jose.
About Redfin Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $115 billion.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.
This Zillow Weekly Market Report includes housing market data as of the week ending June 6[i]
Seattle, WA – June 12, 2020 (PRNewswire) Housing market activity picked back up last week after a hiccup during the week of Memorial Day, Zillow’s Weekly Market Report shows. Newly pending sales returned to growth after last week marked the first dip since mid-April. And new listings are up 17% from the previous week, but it appears to not be enough to keep up with buyer demand as total inventory continues to fall.
Newly pending sales bounce back after holiday weekend dip
Newly pending sales grew 13.6% from the previous week, and are up 28.5% month over month.
Phoenix and Denver are the only two large metros where newly pending sales fell from the week prior.
New listings are back on the upswing, but not keeping up with buyer demand
New listings are up 16.9% week over week after slowing during the week of Memorial Day. They remain 19.8% lower than a year ago.
Total for-sale inventory fell 2.6% from the week prior as sales picked back up, and is now down 27.4% annually.
List prices continue to tick up as expensive listings make up a bigger share of the market
The median list price in the U.S. is $333,372, 1% higher than a week ago and up 4.2% from this time last year. Continued growth in expensive listings, which make up a greater share of the market than they did a month ago, is a driving force behind the rise in median list price.
List prices are up the most from last year in Cincinnati (up 19.2%), and have fallen the most in Chicago and Baltimore (down 1.9%).
Unemployment puts millions in rental payments in limbo
If moves home become permanent or some payments are missed as government assistance and protections expire, rent price growth could slow.
Metropolitan Area
Newly Pending Sales – MOM
Newly Pending Sales – WOW
Total For- Sale Listings – YOY
New For- Sale Listings – YOY
New For- Sale Listings – MOM
Median List Price – YOY
United States
28.5%
13.6%
-27.4%
-19.8%
26.0%
4.2%
New York, NY
90.7%
53.6%
-32.7%
-20.8%
80.4%
3.3%
Los Angeles-Long Beach-Anaheim, CA
54.6%
9.0%
-28.8%
-16.2%
17.5%
7.8%
Chicago, IL
34.1%
17.8%
-27.9%
-19.2%
33.0%
-1.9%
Dallas-Fort Worth, TX
18.7%
5.9%
-19.1%
-12.5%
18.4%
-0.5%
Philadelphia, PA
93.6%
16.3%
-38.8%
-15.7%
51.4%
7.7%
Houston, TX
30.1%
13.6%
-17.4%
-14.9%
2.4%
1.5%
Washington, DC
11.5%
0.1%
-39.7%
-11.4%
33.7%
8.4%
Miami-Fort Lauderdale, FL
37.9%
3.4%
-14.3%
1.4%
43.2%
-0.2%
Atlanta, GA
16.5%
4.7%
-16.4%
-15.5%
36.6%
-1.0%
Boston, MA
37.4%
10.9%
-40.1%
-27.7%
38.4%
6.5%
San Francisco, CA
N/A
N/A
-21.8%
1.0%
41.3%
9.9%
Detroit, MI
150.4%
21.2%
-25.2%
-13.9%
21.5%
-1.0%
Riverside, CA
29.4%
11.9%
-34.9%
-8.4%
35.8%
4.3%
Phoenix, AZ
20.3%
-2.0%
-27.9%
-19.9%
1.5%
7.0%
Seattle, WA
9.9%
4.7%
-49.3%
-30.5%
12.5%
5.8%
Minneapolis-St Paul, MN
10.5%
20.0%
-20.9%
-15.5%
13.2%
3.2%
San Diego, CA
N/A
N/A
-37.2%
-9.2%
39.4%
6.4%
St. Louis, MO
5.4%
1.4%
-33.7%
-24.5%
29.7%
5.2%
Tampa, FL
N/A
N/A
-25.4%
-8.2%
24.4%
1.5%
Baltimore, MD
27.1%
10.9%
-40.6%
-24.0%
26.1%
-1.9%
Denver, CO
17.3%
-1.3%
-23.3%
-0.1%
35.6%
6.7%
Pittsburgh, PA
N/A
N/A
-28.8%
-12.8%
107.3%
10.3%
Portland, OR
11.9%
5.6%
-33.7%
-26.4%
17.7%
1.6%
Charlotte, NC
4.3%
8.4%
-34.9%
-30.1%
18.0%
4.2%
Sacramento, CA
32.7%
2.5%
-25.1%
-8.5%
39.9%
2.9%
San Antonio, TX
N/A
N/A
-14.5%
-15.5%
17.6%
1.8%
Orlando, FL
N/A
N/A
-14.7%
-12.3%
22.7%
0.0%
Cincinnati, OH
17.9%
11.3%
-38.2%
-18.0%
10.1%
19.2%
Cleveland, OH
16.9%
12.9%
-40.8%
-19.9%
35.1%
5.3%
Kansas City, MO
15.3%
18.4%
-39.6%
-21.1%
12.3%
11.2%
Las Vegas, NV
34.1%
6.1%
-22.1%
-15.9%
9.8%
2.0%
Columbus, OH
4.5%
0.1%
-34.9%
-26.1%
10.6%
6.2%
Indianapolis, IN
17.1%
3.3%
-34.5%
-16.7%
12.8%
7.9%
San Jose, CA
N/A
N/A
-30.2%
-15.9%
24.5%
4.3%
Austin, TX
31.6%
8.0%
-26.3%
-12.5%
14.6%
9.4%
i The Zillow Weekly Market Reports are a weekly overview of the national and local real estate markets. The reports are compiled by Zillow Economic Research and data is aggregated from public sources and listing data on Zillow.com. Newly pending sales and new for-sale listings data are reported daily using a smoothed, seven-day trailing average. Total for-sale listings and median sale price data are reported weekly using a smoothed, four-week trailing average. For more information, visit www.zillow.com/research/.
