In the twentieth century, housing inequality and segregation were normal despite the introduction of the Fair Housing Act of 1968. In 1937, the Housing Act was passed which encouraged the growth of low-income housing projects in inner cities which created “minority neighborhoods”. At the same time, Black Americans as well as other citizens of color found it near impossible to qualify for home loans which then prevented them from accumulating wealth through homeownership. This structural racism in the U.S. housing system is still prevalent today and has contributed to the racial disparities in wealth and financial well-being for people of color.
American lawmakers have sought to secure land for and reduce barriers to property ownership and affordable housing, however, these attempts have almost always benefitted white households. This has led to people of color being removed from their homes, being denied access to opportunities to build wealth, and being relocated to isolated communities. Today, people of color are still prevented from obtaining and retaining their own homes and accessing safe, affordable housing. It is essential that lawmakers make amends for the past and the present by introducing new laws which help to expand access and prosperity for all Americans.
For years, governments have employed exclusionary tactics to prevent people of color from building wealth through homeownership and affordable housing.
Although the passing of the Civil Rights Act allowed African Americans to achieve some economic and political gains, inequality still exists for people of color in terms of homeownership, education, and employment. This can be seen in persisting residential segregation which has implications on people of color’s economic mobility. The consistent devaluation of homes in black neighborhoods means that people of color struggle to build up equity and accumulate wealth through homeownership.
Residential segregation still exists in U.S. metropolitan areas, and African Americans still experience the highest segregation levels among all racial and ethnic groups. Studies have shown that today, the typical African American resides in a neighborhood that is only 35% white which is no improvement from what it was in 1940 in spite of the Federal Housing Act slightly improving integration meaning that there is greater black-white integration today compared with 1968. However, decades of racially biased housing policies have led to housing discrimination and residential segregation. This has had a negative effect on African American homebuyers. Homes in primarily African American neighborhoods typically feature more volatile demand and prices than those in predominantly white areas, where resources such as quality schools and access to well-paying jobs are concentrated and contribute to higher housing prices and demand.
In the 1930s, government surveyors graded neighborhoods in 239 cities, color-coding them green for “best,” blue for “still desirable,” yellow for “definitely declining,” and red for “hazardous.” The “redlined” areas were the ones local lenders saw as credit risks, mainly because of the residents’ racial and ethnic demographics.
Neighborhoods that were predominantly made up of African Americans were deemed as undesirable and loans in these neighborhoods were either unavailable or extremely expensive.
This made it more difficult for low-income minorities to buy homes and contributed to the country’s persistent racial wealth gap. This is known as redlining; the refusal of a loan or insurance to someone because they live in an area deemed to be a poor financial risk. Even 50 years after the passing of the law, the lingering effects of redlining are clear, as the pattern of economic and residential racial segregation is still evident in many U.S. cities today.
Racial inequality in housing is not only evident in the U.S. but also in the UK. In the UK, the level of housing stress for people of color is much higher than for whites. Homelessness has also increased massively in these communities, from 18% to 36% in the past two decades. These communities are also more likely to live in overcrowded, inadequate housing than whites. One in six ethnic minority families has a home with a category 1 hazard under the housing, health, and safety rating system. Given the Grenfell Fire tragedy, their homes also less often include safety features such as fire alarms. This over-concentration of marginalized communities in the most deprived areas of UK cities also ensures negative impacts on their health.
Despite some improvement in housing laws, major improvements are still needed both in the UK and the U.S. if we are to achieve full equality for people of color. People often see racial segregation as a “thing of the past,” however, it is still evident today that housing laws and the effects of redlining still marginalize these communities which not only stops them from accumulating wealth but can also have negative effects on their health, safety, and education.
Writer: Courtney Lambert
Editor: Zayna Dilawar
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