History Matters
Communities of color and low-income communities are more likely to rent instead of own a home. This factor perpetuates disparities caused by housing unaffordability because as rents increase over time, renters don’t benefit from the increase in value. [] This difference between renting and owning is caused by past and present separation of different racial groups in neighborhoods, inequitable access to loans and credit, and less wealth over generations.[]
A big example of discriminatory practices is redlining. This was when the Home Owners’ Loan Corporation made maps of cities to show where giving loans for houses was risky. Neighborhoods marked as high risk, or “”redlined,”” often didn’t get loans. These areas were usually where people of color or less wealthy people lived. Redlining went on until the Community Reinvestment Act in 1977 stopped it. But, because of the racist reasons behind it, the effects of redlining can still be seen today.
[H14] America’s Rental Housing: Evolving Markets and Needs. (2013). Joint Center for Housing Studies of Harvard University. https://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/jchs_americas_rental_housing_2013.pdf
[H16] The Color of Wealth in Boston. (2015). Federal Reserve Bank of Boston. https://www.bostonfed.org/publications/one-time-pubs/color-of-wealth.aspx
[H17] Mitchell, B., Franco, J. (2018). HOLC Redlining Maps: The Persistent Structure of Segregation and Economic Inequality. National Community Reinvestment Coalition. https://ncrc.org/holc/
[H18] Shapiro, T., Meschede, T., Osoro, S. (2013). The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide. Institute on Assets and Social Policy. https://heller.brandeis.edu/iere/pdfs/racial-wealth-equity/racial-wealth-gap/roots-widening-racial-wealth-gap.pdf