I think Black History month is the perfect time for a housing history
lesson. I believe we should always learn from our past. Knowing what
we’ve been through, helps us better navigate where we are going.
Have you ever heard of redlining? It may sound like a thing of the past,
but its impact on racial discrimination in housing is still very much alive
today. This practice dates to the 1930s, during the Great Depression. As
the federal government scrambled to provide housing and stimulate the
economy, it inadvertently laid the groundwork for systemic racism.
Richard Rothstein’s book, *The Color of Law*, sheds light on how these
government programs weren't just economic fixes; they were state-
sponsored systems of segregation that entrenched racial divides.
The Federal Housing Administration (FHA), created in 1934, was a key
player in this segregation. It produced color-coded maps of urban areas
to determine which neighborhoods were "safe" or "risky" for mortgage
lending. Black neighborhoods were marked in red, making it nearly
impossible for residents to secure loans. However, this reasoning lacked
any real basis. In fact, studies showed that property values often
increased when people of color moved into previously all-white areas, as
they were willing to pay a premium for limited housing options.
Meanwhile, the FHA was busy subsidizing entire suburbs built
exclusively for white families, effectively blocking people of color from
accessing the same opportunities.
The consequences of redlining were significant. By excluding people of
color from homeownership, the government not only denied them the
chance to build wealth but also locked them into a cycle of poverty.
Rothstein points out that today, Black families have, on average, only
5% of the wealth of White families, a gap that can be traced back to
decades of discriminatory housing policies.
Without the ability to build equity, many Black families couldn't pass
down wealth to their children, perpetuating social and economic
inequalities.
These policies weren't just standalone; they were reinforced by local,
state, and federal laws promoting segregation. The FHA's Underwriting
Manual even stated that “incompatible racial groups should not be
permitted to live in the same communities.” This wasn’t merely a
suggestion; it was a directive that shaped urban landscapes and deepened
racial divides. The manual even recommended constructing highways to
separate neighborhoods, adding another layer of physical and social
barriers.
The fallout from redlining extended beyond housing itself. It affected
education, job opportunities, and healthcare access for generations.
Segregated neighborhoods typically lacked quality schools, jobs, and
medical facilities, creating a cycle of disadvantage. The 1968 Kerner
Commission Report warned that America was "moving toward two
societies, one black, one white — separate and unequal," highlighting
the need for urgent reform.
The Fair Housing Act of 1968 aimed to tackle these issues by
dismantling the institutional barriers that had kept segregation alive. But
by then, the damage had already been done. Homes that were once
affordable were now out of reach for many people of color who had
been systematically excluded from the market during its most
prosperous years. The act's promise remained largely unfulfilled as
discriminatory practices continued to evolve.
Fast forward to today, and the legacy of redlining still affects
homeownership rates and wealth accumulation. Approximately 73% of
White households own their homes, compared to just 42% of Black
households. This gap is not only a reminder of past injustices but also a
reflection of ongoing challenges related to affordability and access.
Understanding the history of redlining is key to addressing the systemic
inequalities that persist today. I have to admit, it’s disheartening that the
National Association of REALTORS® once lobbied against the Fair
Housing Act. But I assure you today, we're committed to advocating for
Fair Housing for All. This is why I’m so passionate for advocacy at both
the state and national levels. I know we can make a difference for
generations to come.
Comentarios