Kelvin Brown is known throughout the District as a Ward 7 advisory neighborhood commissioner and a past candidate for the Democratic nomination for his ward’s council seat.
What many don’t know is that Brown is intensely interested in the real estate field and aspires to become a real estate developer. Thus, it was with anticipation that Brown attended a seminar on Aug. 28, “Expanding Opportunities for Developers of Color,” sponsored by The Urban Institute — a think tank based in Southwest D.C. — to listen and get a sense of the profession.
“I work in the housing market,” Brown, 42, said. “I have dealt in real estate for 13 years and I am looking for more opportunities.”
Brown was joined by 60 people at the seminar as the Institute released a report “Diversifying MultiFamily Housing Development” that talks about the racial/ethnic gap that exists in real estate development.
The Urban Institute Report
The report noted an affordable housing crisis exists throughout the U.S., and that boosting the country’s housing production is critical.
The think tank’s research examined the representation of people of color and women in the housing development market in cities across the country, including the District. The research revealed, among for-profit and nonprofit developers of multifamily housing, there are significant inequities in leadership by race/ethnicity and gender.
In addition to the District, the report targeted Chicago, Los Angeles, Seattle, San Antonio, Boston, Nashville, Miami, Phoenix and Dallas from 2019-2023, focusing on ownership of 10-unit projects.
Based on the data and the requirements, it was reported that 1,385 minority and female developers were active in the 10 cities. Those developers were working on or completed 388,843 housing units worth $87 billion according to property valuation estimates.
Los Angeles, followed by Seattle and the District are the cities with the most development activity in terms of built or permitted units.
The report said in all the cities studied, multifamily housing developers of color are underrepresented compared with their shares of the adult population and conversely, white-led development entities are overrepresented.
Black developers were underrepresented in all cities compared with their share of the adult population. However, the report said in cities such as the District, Boston and Chicago, vibrant ecosystems of African American developers meant relatively better representation compared with the other cities.
Women were also underrepresented in all cities as leaders of large multifamily housing development entities.
In the District, minority and female developers are underrepresented due to structural barriers such as access to industry networks and capital, stifling their potential to contribute to the housing stock and create wealth for themselves and their communities, according to the report.
The report revealed although 39% of the District’s adult population is African American, Black-led development entities only produce 6% of large multifamily housing units and represent only 5% of large multifamily total property valuations.
Advice for Future Minority Developers
Lori Chatman, who serves as the Capital Division president for Enterprise Community Partners is on a mission.
Chatman advocates for “changing the complexion of real estate.”
She said developers of color are needed because many mainstream developers and development companies are reluctant to build housing in low-income and economically depressed areas.
“We have to look beyond who we typically look for developers in developing struggling economic communities,” she said.
Chatman emphasized anyone interested in pursuing a career in real estate development would need to be proactive.
“If you don’t come from a real estate family, the best thing is to learn the business by working for a business,” she said. “I would also advise people to get a college degree. You must have an education, and it is not best to learn the business in the street.”
After attending the seminar, Brown left filled with a newfound knowledge and goal for the development field.
“We need more Black faces in the room,” Brown told The Informer. “Working at Fannie Mae, I understand what this stuff is about.”
