History Matters
One of the reasons Black people have built up less wealth than white people over the last hundred years is discrimination in lending. During the 1930s, the ‘New Deal’ program offered government-insured loans to help people buy homes. However, it left out Black people. Banks marked low-income areas as “high risk” and often denied loans to Black people. Also, many of the newer houses had rules against selling to Black people. Similarly, the GI Bill was set up in a way that made it difficult for Black veterans to get low-cost loans.[] Another reason are federal tax codes that favor homeowners over renters. High-income households receive four times more housing benefits than low-income households.
[VH1] Jackson, C. (2021, August 17). What is redlining? The New York Times. Retrieved April 29, 2022 https://www.nytimes.com/2021/08/17/realestate/what-is-redlining.html
[VH43] Equity is wealth that builds over time from having an asset (such as a house) that increases in value.
[VH6] Katznelson, I. (2005). When Affirmative Action was White: An Untold History of Racial Inequality in Twentieth-Century America. WW Norton & Company. https://wwnorton.com/books/9780393328516
[VH7] Joint Center for Housing Studies of Harvard University. (2013, December 9). America’s Rental History: Evolving Markets and Needs. Harvard University. https://www.jchs.harvard.edu/research-areas/reports/americas-rental-housing-evolving-markets-and-needs https://www.jchs.harvard.edu/research-areas/reports/americas-rental-housing-evolving-markets-and-needs