For decades, Prince George’s County leaders have noted that the county suffers from a shortage of high-end and premium retailers compared to the rest of the Washington region, despite being home to the majority of high-income Black-majority Census tracts in the US. In a recent report, my Brookings Metro colleagues and I analyzed the locations of premium grocery stores in ten metro areas across the country and found that the absence of high-end grocers from Black-majority neighborhoods is part of a broader trend of divestment.
The devaluation of Black neighborhoods in the US is most commonly associated with historical practices such as redlining and mid-20th Century “urban renewal” projects that demolished Black neighborhoods in the guise of “slum clearance.” Devaluation, however, is an ongoing problem across the country today, spanning residential and commercial properties.
Owner-occupied homes in Black-majority neighborhoods are undervalued. The recent release of Federal Housing Finance Agency appraisal reports has confirmed that homes in Black-majority neighborhoods are both appraised at lower values and nearly twice as likely to appraise below the contracted selling price as homes in non-Black neighborhoods.
Similar patterns of devaluation have been found for commercial property in Black-majority neighborhoods, and for customer reviews of retailers located in Black-majority neighborhoods. Retail disinvestment in Black-majority neighborhoods reduces the amenities available to residents of these neighborhoods.. It also forms part of a self-reinforcing cycle. The presence of assets such as premium retailers — or, conversely, of retail options associated with poverty, such as dollar stores — signals to investors and developers that a community either is or is not worthy of further investment.
Click here to read the rest of the article written by DW Rowlands over at Greater Greater Washington
