This research only glimpses at how the Charlotte housing market differs for African Americans and whites. More research would be necessary to have a more definitive research findings. However some reasonable explanations can be provided for disparities in Charlotte's housing market. That African Americans paying higher mortgage payments for lower property values could reflect unfair credit arrangements. Nationwide, African Americans are more often offered subprime loans that offer higher mortgage payments and interest rates.
Lenders often target low-income neighborhoods of color for loans that can have unfavorable terms.
Subprime lending plays a critical role in the housing market, especially with borrowers with some credit problems. However a lack of prime lending in many African American communities and the lack of federal regulation for subprime lenders makes African Americans more susceptible to unfavorable loans that can affect their ability to purchase more expensive homes. A similar pattern arises for low-income African Americans and whites. The aging population of whites could help explain their higher housing values at low-income levels. However, age differences between black and white households are less pronounced in middle and upper income households and probably do not explain disparities in housing values.