Generational wealth implications: Black and Latino-owned homes are more likely to be undervalued

Some experts say racism in the real estate industry hold back Black and Latino families from accumulating wealth.

A new study analyzing more than 12 million home appraisals between 2015 and 2020 found racial and ethnic disparities across the United States.

The research shows that Black and Latino homeowners are nearly twice as likely as white homeowners to have their homes undervalued.

Some experts, like Andre Perry, a senior fellow with the Brookings Metropolitan Policy Program, say this is a sign that racism in the real estate industry is a major factor in keeping Black and Latino families from accumulating wealth.

"When most people talk about structural racism and racism in general, they generally think of Klansmen in robes carrying torches … but where we still see pervasive discrimination that takes money out of people's pockets are in these everyday behaviors or practices that strip wealth," Perry told ABC News.