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Discrimination, Lending Practices and Housing Values: Preliminary Evidence from the Houston Market

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Abstract

At the center of the debate on racially induced price differentials in housing is the issue of discrimination. This research studies the impact that ethnic as well as racial composition in a neighborhood exerts on value. In an attempt to extend previous efforts, aggregate data is used to study the effects of discrimination and lending bias on residential real estate in Houston, Texas. The data do not support allegations of systematic bias in the mortgage lending process.

Suggested Citation

  • Andrew Holmes & Joe F. James, 1996. "Discrimination, Lending Practices and Housing Values: Preliminary Evidence from the Houston Market," Journal of Real Estate Research, American Real Estate Society, vol. 11(1), pages 25-38.
    • Handle: RePEc:jre:issued:v:11:n:1:1996:p:25-38
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    1. Michael H. Schill & Susan M. Wachter, "undated". "A Tale of Two Cities: Racial and Ethnic Geographic Disparities in Home Mortgage Lending in Boston and Philadelphia," Rodney L. White Center for Financial Research Working Papers 16-93, Wharton School Rodney L. White Center for Financial Research.
    2. James S. Moore, 1987. "An Investigation of the Major Influences of Residential Liquidity: A Multivariate Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 15(1), pages 684-703, March.
    3. Holmes, Andrew & Horvitz, Paul, 1994. "Mortgage Redlining: Race, Risk, and Demand," Journal of Finance, American Finance Association, vol. 49(1), pages 81-99, March.
    4. Daniels, Charles B., 1975. "The influence of racial segregation on housing prices," Journal of Urban Economics, Elsevier, vol. 2(2), pages 105-122, April.
    5. John Yinger, 1978. "The Black-White Price Differential in Housing: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 54(2), pages 187-206.
    6. Brian D. Kluger & Norman G. Miller, 1990. "Measuring Residential Real Estate Liquidity," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(2), pages 145-159, June.
    7. Lapham, Victoria, 1971. "Do Blacks Pay More for Housing?," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1244-1257, Nov.-Dec..
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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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