Pressley Underscores Harm of Racial Bias in Home Appraisals, Urges Reform of Appraisal System to Ensure Equity, Accountability

Black families who sought homeownership were held back by red tape, limited to redlined neighborhoods and faced blatant racism from banks.”

“And for those who managed to secure a mortgage and buy a home, the value of their homes was grossly diminished by an appraisal system rife with racial bias, and that same appraisal system is around today.”

Pressley Legislation Would Promote Equity, End Bias in Home Valuations

WASHINGTON – RealEstateRama – During a House Financial Services Committee hearing this week, Congresswoman Ayanna Pressley (MA-07) laid plain the harmful discriminatory nature of the home appraisal process that has disadvantaged many current and aspiring homeowners—especially homeowners of color, across the country and in Boston. Rep. Pressley pushed for essential reform to modernize the appraisal process, strengthen transparency and accountability, and help families challenge bias valuations.

In November 2025, on National Housing Day, Rep. Pressley introduced the Appraisal Modernization Act, legislation to promote equity and combat systemic bias in the home appraisal process. The Senate companion legislation is being led by Senator Raphael Warnock (D-GA). Bill text is available here.

A transcript of Congresswoman Pressley’s remarks is available below, and the video is available here.

Transcript: Pressley Underscores Harm of Racial Bias in Home Appraisals, Urges Reform of Appraisal System to Ensure Equity, Accountability
Financial Services Committee

February 10, 2026
REP. PRESSLEY: Well, since Black history is American history, I’ll say Happy Black History Month.

And on the 100th anniversary of Black History Month, I refuse to allow our contributions to be relegated to a footnote or to be whitewashed by an Executive Order. 

Dr. Hamilton, I am grateful for your leadership in shaping the national conversation on baby bonds, and I thank you for your partnership and counsel on the drafting of my baby bonds legislation in partnership with Senator Booker. 

Republicans and Trump won’t give you credit, but we know that Trump accounts exist only because of your genius and the work on the ground that you laid as spearheading the issue of baby bonds. 

So I want to give you your flowers officially on the Congressional Record, you have been a pioneer in confronting the racial wealth gap. 

I represent the Massachusetts Seventh congressional district, and a report by the Federal Reserve Bank of Boston found – and this will shock many – but that the median net worth for white households in Boston is $247,500, while for Black households, it is a mere $8. 

That has everything to do with housing. 

Dr. Hamilton, would you agree that homeownership plays an essential role in wealth building? 

DR. DARRICK HAMILTON: Yes. And thank you, Congresswoman, I honestly am very honored and proud to have that accolade that you offered me.

REP. PRESSLEY: Thank you, and we’re grateful for you.

So yes, homeownership is essential to wealth building, and I believe that a majority of the public agrees with and acknowledges that.

In fact, during the 1950s and 60s, one of the foundational bricks that built America’s middle class was home ownership. 

It was the advice given by the government to citizens and passed down from parents to their kids. 

Homeownership symbolized financial opportunity and freedom. 

But we know what was also taking place in the 50s and 60s: Jim Crow. Jim Crow discrimination.

Black families who sought homeownership were held back by red tape, limited to redlined neighborhoods and faced blatant racism from banks. 

And for those who managed to secure a mortgage and buy a home, the value of their homes were grossly diminished by an appraisal system rife with racial bias, and that same appraisal system is around today. 

Just look at the data. Last year, a report estimated that Boston’s Black homeowners lose up to $2.3 billion in wealth because homes owned by Black families are valued about 18% less – they can literally be right next door to each other – than comparable White-owned homes, or roughly $125,000. 

But this isn’t just in my district. It’s happening all across the country. 

I ask unanimous consent to enter into the record a March 2024 article from The Bay State Banner titled, “Boston Black homeowners lose billions to biased property valuations.”

I also asked to enter into the record a Brookings Institution study titled, “How racial bias in appraisals affects the devaluation of homes in majority-Black neighborhoods.” 

And finally, I asked to enter without unanimous consent, a Freddie Mac analysis titled, “Freddie Mac Research Explores Causes for the Appraisal Valuation Gap for Homeowners in Minority Neighborhoods.”

CHAIR HILL: Without objection. 

REP. PRESSLEY: Dr. Hamilton, with my remaining time – for Black families of all income levels, there is no getting around a discriminatory appraisal system. Why does this matter for the affordability crisis and the racial wealth gap?

DR. HAMILTON: And you know, we should recognize, when we cited that most Americans own their home – that’s not true for Black people, and that’s grounded in a history that you describe. It’s not happenstance. 

Indeed, as we have this conversation, one of the problems is, if we look at any analytical issue in an ahistoric way, it’s myopic. 

So if we’re if we’re revisiting the Great Recession, if we’re revisiting inflation in the pandemic, if we’re not telling the complete story, we are inaccurate. 

Inflation was to deal with a pandemic, frankly, a plague that we were faced and we had supply chain issues. It’s almost miraculous that we’re still not in a great recession today.

The critiques of the Dodd-Frank Act that we’re hearing today, we’re losing the context by which it emerged. It’s almost as if we will repeat the same problems that we had in the past. 

Of course, we need smart regulation, but complete deregulation was the root of the speculation that nearly brought down our economy in two scenarios.

REP. PRESSLEY: Thank you, Dr. Hamilton. And on the issue of the appraisal system in particular, I just want to share that I was proud to partner with Senator Warnock to introduce legislation that would modernize the appraisal process, to strengthen transparency and accountability and the consumer right to appeal if they decide.

Thank you.

###