UW News
Isaac Slaughter
July 25, 2024
How iBuyers are changing real estate racial disparities and individual homeownership rates in one major city
University of Washington researchers investigated how iBuyers — companies that use automated algorithms to quickly buy and sell homes — have affected the well-documented racial bias against Black home sellers. Looking at Mecklenburg County, North Carolina, they found that on average iBuyers paid more equal prices to Black and white home sellers than individual buyers, largely because iBuyers paid white sellers significantly less on average than an individual buyer. They also discovered that iBuyers were significantly more likely to resell homes to institutions, such as large rental companies that’ve been tied to high eviction rates and rent-gouging.
