Before 1968, people of color (POC) often faced significant challenges in securing mortgages to purchase a home. Redlining, as we've previously discussed, is the practice of denying loans to creditworthy applicants for housing in certain neighborhoods. Bankers assessing financial risk created maps that highlighted non-white neighborhoods in red, marking them as risky investments. The Fair Housing Act outlawed this discriminatory practice in 1968; however, its impact has contributed to economic disparities that continue to affect many minority communities today. This post will explore the effect of redlining in many cities along the West Coast.
Redlining affected many people of color in Oakland, CA, which created a large wealth disparity. The construction of Highway 17 cut through the heart of the African American community, dividing it and preventing economic sustainability by separating it from downtown. Today, residents in these neighborhoods have a lower quality of living, marked by higher rates of crime, infant mortality, and poverty. The effects extend to education; an Oakland school district in a historically redlined area receives less funding from property taxes, impacting teacher hiring and the amount of funds spent per student.
In Los Angeles, neighborhoods once subjected to redlining have become hotspots for gang activity and aggressive anti-gang policing tactics. The stigma associated with these redlined areas has led to continued underinvestment, contributing to the creation of disenfranchised urban spaces where gang territories are established. These communities, predominantly low-income and of color, experience systematic underinvestment and over-policing.
Home Owners Loan Corporation (HOLC) | Bloch, S., & Phillips, S. A. (2021)
In Northern California, residents of San Francisco face significant health threats from pollution, a legacy of historical redlining practices. Redlining exposed neighborhoods to more industrial businesses, leading to higher levels of pollution and traffic. These regions also lack protective environmental legislation. According to a report from the California Environmental Protection Agency, redlining concentrated communities of color in areas that adversely affected their health and shortened life expectancy.
In Phoenix, Arizona, the legacy of redlining extends to environmental challenges. Historically redlined areas of Phoenix have seen less investment in thermal equity solutions like tree planting and public cooling spaces. These neighborhoods suffer from fewer infrastructure investments and have fewer green spaces to provide shade, complicating efforts to mitigate extreme heat. As a result, residents face higher incidences of heat-related illnesses and deaths.
In Seattle, redlining confined African Americans to the Central District, curtailing their ability to establish homeownership outside this area. The Central District suffered from disinvestment, leading to fewer resources for its residents and diminished public services. Banks denied financial support to Black residents, instead redirecting funds from these neighborhoods to predominantly white, suburban areas deemed low-risk. As a result, money from the Central District disproportionately benefited white neighborhoods. According to the Systemic Justice Project, banks doubled their investments in white suburban areas while reducing their investments in Black communities by an average of 75 percent. The disparity in cash flow and investment hindered the revitalization and development of Black neighborhoods.
Redlining report, 1975 | Document 11219 | Seattle Municipal Archives
The history of redlining has impacted every metropolitan city in the United States, disproportionately affecting neighborhoods marked by redlining. Redlining has a trickle-down effect evident in environmental conditions and virtually all other aspects of life, resulting in a lower quality of living for residents in these communities. Legislation to improve these areas is crucial to reversing or preventing further economic disparities and narrowing the wealth gaps between people of color and whites.
How do you see the effects of redlining in your community? What steps do you think can be taken to address the ongoing issues caused by redlining? Let us know in the comments below.
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