Effects of housing characteristics and neighborhood racial composition on judgments of market value and preference

A major reason for continued racial residential segregation in the U.S. is that many Whites avoid neighborhoods with substantial numbers of non-Whites, Blacks in particular. This avoidance appears to be partly due to stereotypic beliefs associating declining housing values with Black residents. Given limited empirical evidence of a simple link between Blacks and low housing values, however, these observations raise a number of questions. In particular, is neighborhood racial composition perceived to be more relevant than housing characteristics to housing values and, correspondingly, preferences to live in houses? If so, is this always the case?;To address these questions, the present study examined whether market value estimates and preference ratings for a set of 24 houses would be affected by information that the houses were located in a predominantly Asian, Black, Latino, or White neighborhood (neighborhood racial composition condition). The houses varied in a systematic and controlled manner in terms of size (small or large) and style (American Vernacular, Deconstructionist, Dutch Colonial, Georgian, Greek Revival, Modern, Neo-French Eclectic, Neo-Tudor, Neo-Victorian, Pueblo, Spanish Colonial, and Trailer). Market value estimates were expected to vary by neighborhood racial composition condition in a manner consistent with common stereotypes, and preference ratings were in turn expected to correspond to market value estimates. It was further anticipated that house size and style would influence judgments, both independent of and in combination with information about neighborhood racial composition.;The study findings were generally consistent with expectations, with some important exceptions. Notably, preference ratings did not correspond to market value estimates, and house size and style did not interact with neighborhood racial composition condition to affect market value estimates. These findings suggest that stereotypic beliefs cued by information about neighborhood racial composition affected participants' perceptions of market value, even when considering architectural characteristics of houses relevant to assessments of market value. They also suggest that housing facade characteristics influenced perceptions of market value and preferences to live in houses. Finally, they suggest that considerations other than housing facade characteristics and housing values influenced preferences to live in houses.