In Philadelphia, over 50% of residents own their homes, aligning with the national average for urban areas.
However, homeownership statistics do not capture the full picture of wealth distribution in the city.
Kenyatta James, deputy director of the Economy League of Greater Philadelphia, stresses that many homes in communities of color have been systematically devalued over decades.
This devaluation has prevented owners from amassing the necessary equity to engage meaningfully in the U.S. economy, impacting their ability to send children to school, start businesses, and participate in other crucial activities of economic mobility.
James elaborates that the Economy League aims to address these disparities through initiatives like the Fair City Challenge, a program focused on research and solutions to tackle the inequities in housing valuation in Philadelphia.
For a significant time, areas like West Philadelphia were perceived as having lower property values despite comparable amenities, such as public transport access to downtown, parks, and community resources.
When perceptions shifted, investment followed, leading to increased prices and equity in those neighborhoods, even though the underlying infrastructure remained unchanged.
Research from the Economy League reveals alarming trends regarding housing wealth accumulation.
The study, which drew on 70 years of data, indicates that if majority Black neighborhoods had appreciated at the same rate as their white counterparts since 1950, homeowners in these Black neighborhoods would collectively hold an additional $24 billion in housing wealth.
For Latino neighborhoods, the potential increase in wealth stands at $33.4 billion.
The Fair City Challenge gives participants a platform to design programs that can begin to address these valuation disparities and close the wealth gap in the city.
James remarked on the importance of reevaluating how the city values housing and the historical context behind such valuations, noting that it’s critical to understand how perceptions have been weaponized against certain communities.
Recently, the Fair City Challenge named four finalists, each awarded $10,000 to develop pilot programs aimed at revaluing properties in historically disinvested neighborhoods in Philadelphia.
The challenge culminates in a pitch competition where these finalists will present their concepts to a panel of judges, alongside mentorship opportunities to refine their initiatives.
The proposed projects range from housing initiatives to community beautification efforts, encompassing a wide array of approaches to tackling inequities in property valuation.
Some proposals include urban farming, community gardening, and transforming open spaces into sites for community engagement and connection.
Participants are also addressing issues such as appraisal bias and exploring how to diversify the appraisal industry, ensuring that communities have a voice in new development processes.
Among the finalists is the WEALTH Collective, whose focus lies on combating bias in housing appraisals.
Group member Vonetta Hawkins highlighted their mission to eradicate racial bias, emphasizing that Black and brown individuals are disproportionately losing potential legacy wealth.
Hawkins, who leads a consulting firm, collaborates with colleagues Clara Lyons-DeVaughn, a real estate broker, and Almita Tankersly, from Credit Fitness, a company dedicated to improving financial literacy and creditworthiness for new homeowners.
The collective’s initiative features three key components, starting with a mobile application designed to report and educate users regarding housing appraisal bias.
The app aims to empower homeowners who suspect they’ve experienced bias in their appraisals, providing a platform for them to document and analyze such occurrences.
Alongside the app’s capability to reveal instances of systemic bias, it also serves as a valuable data source for stakeholders seeking to understand appraisal challenges in various neighborhoods.
Furthermore, the WEALTH Collective is committed to hands-on community engagement by hosting educational forums to connect with those lacking access to technology.
Finally, the group is focused on advocacy, urging for legislative acknowledgment of appraisal bias and holding accountable those responsible for perpetuating it.
Each member of the collective has encountered appraisal bias personally and professionally, fueling their dedication to finding solutions.
Lyons-DeVaughn noted that the collective’s overarching goal is to restore equity to Black and brown homeowners and allow them to leverage their home’s value for educational, business, and improvement opportunities.
The WEALTH Collective is planning two public sessions to invite community participation in their program, one targeting stakeholders and another for the general public, encouraging interested individuals to reach out via email to participate.
Alongside this initiative, the Climate Equity Home Fund (CEHF), spearheaded by Somalisa Sahoo, also stands as a finalist in the Fair City Challenge.
The CEHF aims to return equity to homeowners through strategic energy upgrades that enhance home efficiency and reduce costs.
Sahoo described their vision of a blended capital fund that finances impactful home upgrades—like new roofs, HVAC systems, Energy Star appliances, and potentially rooftop solar installations.
These upgrades not only seek to improve the comfort and livability of homes but also aim to lessen greenhouse gas emissions and promote better public health outcomes.
Having firsthand experience with energy-efficient investments during her time in Europe and Sub-Saharan Africa, Sahoo is determined to apply her insights to Philadelphia’s underserved neighborhoods, which often experience disproportionate energy burdens.
She highlighted the average age of homes in Philadelphia, noting that it significantly contributes to the energy challenges residents face, particularly in areas such as Kensington and Strawberry Mansion, where utility bills often take up a large share of income.
The initial phase of the Climate Equity Home Fund involves a pilot program with a single eligible homeowner, where fast-turnaround energy upgrades will be implemented.
These upgrades will not only enhance the homeowner’s comfort but will also serve to decrease monthly energy costs, illustrating the tangible benefits of energy-efficient renovations.
Both the WEALTH Collective and the Climate Equity Home Fund, along with two other finalists, successfully secured $10,000 during the pitch competition held in May.
They are now engaged in an accelerator phase, refining their final pilot programs while preparing for further presentations to investors and stakeholders.
The challenge’s overarching winner, to be announced on September 11, will gain an additional $50,000 and dedicated support for implementing their initiative, fostering collaboration between innovators and vital stakeholders to combat housing inequity in Philadelphia.
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