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New Study Reveals That Blacks Are Charged More For Rent In Majority-White Neighborhoods

According to a recently published study, African American renters spend more money on housing identical to whites in majority-white neighborhoods.

The study, which focuses on the percentage of difference between what Black and white renters pay in predominately white areas, was published  by economists Dirk Early of Southwestern University, Paul Carrillo of George Washington University and Edgar Olsen of the University of Virginia. The researchers discovered that Blacks face a steep penalty that increases with the number of whites that move into a neighborhood, the “Racial Rent Differences In U.S. Housing Markets” study found.

The rent amount for African Americans as compared to whites is 2.4 percent higher in majority-white areas, says the study. Researchers compared that number to what Black renters pay as compared to white renters in areas that are less than 10 percent white: on average 0.6 percent more in rent costs.

The research is particularly significant in light of the high number of Black renters in the U.S. “Understanding racial rent differences is arguably even more important since nearly 60 percent of black households are renters,” the study’s authors said.

The rental disparities among the races is significant as more Americans from various racial and ethnic backgrounds have chosen integrated neighborhoods, CBS News reported.

The researchers’ work also connects to African-American homeownership rates, which are less than whites’.

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