Bridging the racial disparity in wealth creation in Milwaukee

Kishor, N. Kundan and Konkel, Rebecca and Yoon, Jangsu and Zhao, Tian (2023): Bridging the racial disparity in wealth creation in Milwaukee.

Abstract

This paper investigates the persistent racial disparities in homeownership and wealth creation in Milwaukee. Despite past efforts, homeownership rates for Black and Hispanic households remain significantly lower compared to White households, contributing to wealth inequalities. We develop a Wealth Creation Index that highlights pronounced racial/ethnic disparities in wealth accumulation. The study identifies additional factors such as crime rates, proximity to quality schools, and lot size, which impact these disparities. Findings also reveal lower home value appreciation for minority and female homeowners, and the disproportionate negative effects of foreclosures on their properties. The research provides insights for informing public policy, guiding investments, and benchmarking interventions to address disparities and promote equitable homeownership.

• Item Type: MPRA Paper
• Language: English
• Keywords: Housing return disparity, Machine Learning Models, Housing Market
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R28 - Government Policy; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R30 - General

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