Question

Why do the effects of redlining continue even after redlining was made illegal?

Answer 1

Since redlined areas were overtly denioed opportunities to develop, it left those neighborhoods and residents falling behind other neighborhoods, where business ,schools, and housing grew.

Even though redlining has been made illegal, the build up of suppressed growth has made it so communities of color still feel the effect today. Studies shows that 74% of the neighborhods that were redlined in the 1930s are low to moderate income neighborhoods today, and 64% are also majority minority neighborhoods.

Also the Black and White homeownerships gaps remained wide as it was at the start of 20th century. Discriminatory practices like blockbursting, predatory lending led to a lower rate of appreciation for real estate in redlined neighborhoods, which paved the way to an increased wealth gap black and white families.

There are also racial disparities in housing appreciation across home mortgage borrowers of all income levels - but specially among Black borrowers whose homes are still frequently undervalued.