Redlining is a discriminatory act that prevents people from buying a home based on race. In the past, neighborhoods, where people of color lived, were separated from white communities with red lines. Neighborhoods marked with red lines were considered high-risk areas, so black people trying to buy homes in such areas were often denied mortgages. Moreover, real estate sellers had the right to deliberately inflate the cost of housing based on a person’s race.
Furthermore, the people of color could only live in the redlined areas because if they bought property outside of it, the value of the real estate in the entire neighborhood could decrease. In addition, housing prices for black people were substantially inflated. Generally, redlining was racial discrimination in housing enshrined in legislation (Schaefer, 2018). Such actions have led to a wealth gap between white people and people of color.
Moreover, areas marked with red lines received significantly less investment from the state. It has led to a slowdown in infrastructure development in the area compared to the rest of the city. The lack of funding for these neighborhoods significantly worsened the people’s quality of life. As a result, people living in areas that used to be marked with red lines now have more health problems.
The effects of redlining practices can still be seen in some American cities. For example, some areas of Chicago and Detroit are still considered unfavorable, and the price of real estate in such districts is significantly lower. In these cities, there is a noticeable difference in wealth and wealth between white and black people. Furthermore, a considerably larger number of black people live below the poverty line.
Reference
Schaefer R. T. (2018). Race and ethnicity in the United States. Pearson.