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MarketWatch: How ‘redlining’ still hurts home values

MarketWatch, April 26, 2018: How ‘redlining’ still hurts home values

The housing market’s recovery has lifted property prices nationwide — but many homes located in formerly “redlined” neighborhoods haven’t seen the same benefit.

Though practice was technically outlawed in 1968 with the Fair Housing Act, its most pernicious effects are still visible today. On average, a home located in an area that was given a “hazardous” rating back in the 1930s is only worth 85% of the median value of a home in surrounding, non-redlined neighborhoods, according to a study from real-estate website Zillow ZG, +0.25%

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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