Off Plan Property Exchange, October 20, 2023, How Redlining Continues To Shape Property Values And Neighborhoods Today
In the annals of American history, redlining holds a notorious position as a discriminatory practice that has shaped the landscape of urban neighborhoods and property values. Despite its official abolishment in the late 1960s, the legacy of redlining continues to reverberate in our society today, casting a long shadow over the economic and social fabric of our cities.
Redlining, a term coined in the 1930s, refers to the practice where banks and insurance companies would draw red lines on maps around neighborhoods they deemed risky for investment, primarily because they were populated by racial and ethnic minorities. This resulted in a systemic denial of loans and insurance to residents of these neighborhoods, thereby stunting their economic growth and prosperity.
The link between redlining and current property values is particularly striking. Research conducted by the National Community Reinvestment Coalition (NCRC) found that more than three-quarters of neighborhoods redlined in the 1930s continue to be predominantly low-to-moderate income. Furthermore, more than half are predominantly populated by racial and ethnic minorities. These neighborhoods have seen significantly less investment and development over the years, leading to lower property values.
