The February 2024 updated “Does Historical Redlining Influence Today’s AVM Estimates” study by Veros Real Estate Solutions (Veros®) examines the influence of historical redlining on modern automated valuation models (AVMs) in the housing market. In their update, researchers expand their analysis to five additional metropolitan areas in the United States.
Contrary to expectations, Veros’ economists found that AVM estimates remain unaffected by historical redlining in all areas studied. This suggests that AVMs can provide reliable and equitable property valuations, regardless of past biases. The study underscores the importance of ongoing analysis to ensure fairness in the valuation process and encourages other AVM providers to engage in similar research.
Veros reaffirms its commitment to delivering unbiased and accurate valuations, contributing to a more equitable housing market. They invite further exploration of their findings and recommendations in their recent blog located here.
