Can Automated Valuation Models Deliver Fair Property Values to All Homeowners?
2024 Study Update on "Does Historical Redlining Influence Today’s AVM Estimates"
The issue of racial discrimination within the housing market has long been a topic of concern, particularly in the context of real estate appraisals. At the forefront of this discourse is the examination of historical practices such as redlining and their potential impact on modern automated valuation models (AVMs).
In our ongoing commitment to transparency and equity, Veros Real Estate Solutions (Veros®) is pleased to present the latest update to our research study, “Does historical redlining influence today’s AVM estimates,” authored by Reena Agrawal, Veros’ Research Economist, and Eric Fox, Veros’ Chief Economist and Senior Vice President of Analytics.
Earlier Editions
The 2023 Updated Edition
Investigation into the repercussions of racial discrimination in the housing market has prompted stakeholders to question whether any prejudice may be grounded in historical redlining practices. If so, are all property valuations biased due to historical redlining. Do AVMs provide a distinct benefit when it comes to valuations?
To help answer these questions. Veros’ economists investigated the potential impact of historical redlining by examining VeroVALUE AVM predictions for single-family properties in historically redlined versus non-redlined neighborhoods. Read the report today!
The 2024 Updated Report: "AVM Performance: Is There Evidence of Racial Bias?
Fairness and accuracy matter in property valuations. Veros Real Estate Solutions (Veros) Economists and Data Analysts have released their 2024 year-end update to the ongoing study examining the performance of the VeroVALUE Automated Valuation Model (AVM). Our latest update shows that the VeroVALUE AVM continues to deliver unbiased, reliable results across diverse communities.
The 2022 Updated Report: "AVM Performance: Is There Evidence of Racial Bias?
Investigation into the repercussions of racial discrimination in the housing market has prompted stakeholders to question whether any prejudice may be grounded in historical redlining practices. If so, are all property valuations biased due to historical redlining. Do AVMs provide a distinct benefit when it comes to valuations?
To help answer these questions. Veros’ economists investigated the potential impact of historical redlining by examining VeroVALUE AVM predictions for single-family properties in historically redlined versus non-redlined neighborhoods. Read the report today!
The 2022 Report: "AVM Performance: Is There Evidence of Racial Bias?
During the past several years, the discussion surrounding the extent of discrimination and bias in the U.S. housing market has been reignited. One of the key reasons for the racial wealth gap in the U.S. is the lower homeownership rates among minority households.
This report focuses on the question of whether Veros’ VeroVALUE AVM exhibits evidence of racial bias in its results.
Webinars & Other Resources
Resources:
- University of Richmond, “Redlining Richmond – Digital Scholarship Lab“
- University of Richmond Interactive, “Mapping Inequality, Redlining in New Deal America“
- Veros Research Report: “AVM Performance – Is there Evidence of Racial Bias?“
