3.5 Housing discrimination and segregation

Housing discrimination has deep roots in U.S. history, shaping residential patterns and perpetuating inequality. From racial zoning to redlining, discriminatory practices have limited housing opportunities for marginalized groups, particularly people of color.

Today, housing discrimination persists in more subtle forms, like steering and predatory lending. The Fair Housing Act prohibits discrimination, but enforcement challenges remain. Addressing this issue requires understanding its complex history and ongoing impacts on communities.

History of housing discrimination

• Housing discrimination in the United States has a long and complex history that has contributed to persistent racial segregation and inequality
• Discriminatory policies and practices have been used to restrict access to housing based on race, ethnicity, and other protected characteristics
• These historical practices have had lasting impacts on residential patterns and opportunities for marginalized communities

Racial zoning ordinances

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  1930-1965: The Great Depression and World War II - Baltimore’s Civil Rights Heritage View original

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  1885-1929: Segregation and the Fourteenth Amendment - Baltimore’s Civil Rights Heritage View original

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  1930-1965: The Great Depression and World War II - Baltimore’s Civil Rights Heritage View original

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Top images from around the web for Racial zoning ordinances

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  1930-1965: The Great Depression and World War II - Baltimore’s Civil Rights Heritage View original

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  1929-1954: The Great Depression to the Double V Campaign - Baltimore’s Civil Rights Heritage View original

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  1885-1929: Segregation and the Fourteenth Amendment - Baltimore’s Civil Rights Heritage View original

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  1930-1965: The Great Depression and World War II - Baltimore’s Civil Rights Heritage View original

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  1929-1954: The Great Depression to the Double V Campaign - Baltimore’s Civil Rights Heritage View original

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• Early 20th century municipal laws that explicitly prohibited certain racial groups from living in designated neighborhoods (Baltimore, 1910)
• Reinforced racial segregation by legally restricting where people of color could reside
• Declared unconstitutional by the Supreme Court in Buchanan v. Warley (1917), but similar practices continued informally

Restrictive covenants

• Private agreements among property owners that prohibited the sale or rental of homes to specific racial or ethnic groups
• Often included in property deeds and enforced by neighborhood associations (Levittown, NY)
• Became widespread in the early to mid-20th century as a means of maintaining racial segregation
• Rendered unenforceable by the Supreme Court in Shelley v. Kraemer (1948), but continued to have lingering effects

Redlining practices

• Discriminatory lending practices used by banks and government agencies to deny mortgage loans and other financial services to residents of certain neighborhoods, primarily communities of color
• Neighborhoods were color-coded on maps to indicate their perceived investment risk, with red areas considered "hazardous" (Home Owners' Loan Corporation maps)
• Resulted in disinvestment, deterioration, and limited access to homeownership in redlined communities
• Officially outlawed by the Fair Housing Act of 1968, but the effects persist today

Blockbusting and white flight

• Blockbusting: Real estate agents exploiting racial fears to pressure white homeowners to sell their properties at low prices, then reselling to African American buyers at inflated prices
• White flight: The mass migration of white residents from urban neighborhoods to suburbs in response to the influx of people of color (post-World War II suburbanization)
• Contributed to the racial turnover of neighborhoods and the concentration of poverty in inner-city areas
• Exacerbated patterns of residential segregation and wealth disparities between white and non-white communities

Forms of housing discrimination

• Housing discrimination can take various forms, ranging from overt acts of exclusion to more subtle and covert practices
• These discriminatory practices perpetuate housing segregation and limit access to housing opportunities for protected classes
• Understanding the different manifestations of housing discrimination is crucial for identifying and addressing these issues

Overt vs covert discrimination

• Overt discrimination: Blatant and explicit acts of discrimination, such as refusing to rent or sell to someone based on their race or other protected characteristics
• Covert discrimination: Subtle and less obvious forms of discrimination that may be harder to detect and prove (providing different information or services based on race)
• Both forms of discrimination are illegal under the Fair Housing Act, but covert practices can be more challenging to identify and address

Steering by real estate agents

• The practice of guiding prospective homebuyers or renters towards or away from certain neighborhoods based on their race, ethnicity, or other protected characteristics
• Real estate agents may use coded language, selectively show listings, or provide different information to steer clients (emphasizing school quality or crime rates)
• Steering reinforces patterns of segregation by limiting housing choices and perpetuating racial disparities in access to neighborhoods

Predatory lending practices

• Targeting vulnerable communities, particularly people of color, with unfair and abusive lending practices
• Offering loans with high interest rates, excessive fees, and other unfavorable terms that make it difficult for borrowers to repay (subprime mortgages)
• Predatory lending can lead to higher rates of foreclosure, loss of wealth, and further disinvestment in targeted communities
• Disproportionately affects communities of color and contributes to the racial wealth gap

Discriminatory insurance policies

• Insurance companies using factors such as race, ethnicity, or neighborhood composition to determine coverage, premiums, or claim payouts
• Redlining in the insurance industry: Denying or limiting coverage in certain areas based on racial or ethnic demographics (higher premiums in predominantly Black neighborhoods)
• Discriminatory insurance practices can make it harder for residents in affected areas to obtain or afford necessary coverage
• Lack of adequate insurance coverage can hinder investment, property maintenance, and community stability

Consequences of housing discrimination

• Housing discrimination has far-reaching consequences that extend beyond the housing market itself
• Discriminatory practices perpetuate residential segregation, exacerbate wealth disparities, and limit access to opportunities for marginalized communities
• The impacts of housing discrimination are intergenerational and contribute to broader patterns of social and economic inequality

Residential segregation patterns

• Housing discrimination has been a major driver of residential segregation, the spatial separation of racial or ethnic groups in different neighborhoods
• Segregation can be measured by the dissimilarity index, which ranges from 0 (complete integration) to 100 (complete segregation)
• High levels of segregation persist in many U.S. cities, with Black-white dissimilarity indices often exceeding 60 (Milwaukee, Detroit)
• Segregation concentrates poverty, limits access to resources, and perpetuates disparities in education, health, and employment opportunities

Wealth inequality and homeownership

• Homeownership is a key driver of wealth accumulation, as home equity accounts for a significant portion of household wealth
• Housing discrimination has limited access to homeownership for people of color, contributing to the racial wealth gap
• In 2019, the Black homeownership rate was 42.1%, compared to 73.3% for white households
• Disparities in home values, appreciation rates, and access to mortgage credit further exacerbate wealth inequalities along racial lines

Access to quality education

• Residential segregation often leads to segregation in public schools, as school attendance is typically based on neighborhood boundaries
• Schools in segregated, low-income neighborhoods often have fewer resources, less experienced teachers, and lower academic performance
• Housing discrimination thus contributes to educational inequities and the achievement gap between white students and students of color
• Limited access to quality education can have long-term impacts on individual outcomes and intergenerational mobility

Exposure to environmental hazards

• Discriminatory housing practices have disproportionately concentrated communities of color in neighborhoods with higher exposure to environmental hazards
• These hazards can include proximity to industrial facilities, highways, and other sources of pollution (lead contamination, air pollution)
• Environmental racism refers to the disproportionate burden of environmental risks and harms on marginalized communities
• Exposure to environmental hazards can have adverse health effects, such as higher rates of asthma, lead poisoning, and other illnesses

Fair Housing Act of 1968

• The Fair Housing Act (FHA) is a landmark federal law that prohibits discrimination in the sale, rental, and financing of housing based on protected characteristics
• The FHA was passed in the wake of the civil rights movement and the assassination of Dr. Martin Luther King Jr.
• The Act aimed to address the long history of housing discrimination and promote equal access to housing opportunities

Prohibited discriminatory practices

• The FHA prohibits a wide range of discriminatory practices in housing, including:
  • Refusing to sell, rent, or negotiate housing
  • Setting different terms, conditions, or privileges for the sale or rental of housing
  • Falsely denying the availability of housing
  • Blockbusting and steering
  • Discriminatory advertising or statements
  • Discriminatory lending or insurance practices
• These prohibitions apply to various actors in the housing market, including landlords, real estate agents, lenders, and insurance companies

Protected classes under the Act

• The FHA originally protected individuals from discrimination based on race, color, religion, and national origin
• Amendments to the Act have expanded the list of protected classes to include:
  • Sex (1974)
  • Disability (1988)
  • Familial status (1988), protecting households with children under 18 and pregnant women
• These protected classes are groups that have historically faced discrimination in housing and are now legally shielded from such practices

Enforcement and limitations

• The U.S. Department of Housing and Urban Development (HUD) is responsible for enforcing the FHA
• Individuals who experience housing discrimination can file complaints with HUD or pursue private lawsuits
• The Act provides for various remedies, including injunctive relief, monetary damages, and attorney's fees
• However, enforcement of the FHA has been limited by factors such as inadequate resources, the difficulty of proving discrimination, and the need for proactive testing and investigation

Amendments and expansions

• The FHA has been amended and expanded over time to address emerging issues and strengthen its protections
• The 1988 amendments, known as the Fair Housing Amendments Act, added protections for people with disabilities and families with children
• Recent efforts have focused on expanding the Act's protections to include sexual orientation and gender identity
• Despite these amendments, the FHA's effectiveness in combating housing discrimination and segregation remains a subject of ongoing debate and advocacy

Persistence of housing segregation

• Despite the passage of the Fair Housing Act and other anti-discrimination laws, housing segregation remains a persistent problem in the United States
• The legacy of historical discriminatory policies, as well as contemporary practices and socioeconomic factors, contribute to the ongoing challenge of achieving integrated communities
• Addressing the root causes of segregation requires a multi-faceted approach that tackles both individual and structural barriers

Lingering effects of historical policies

• The impact of past discriminatory policies, such as redlining and racially restrictive covenants, continues to shape residential patterns today
• Neighborhoods that were historically redlined or subject to disinvestment often face ongoing challenges, such as lower property values, limited access to credit, and reduced public services
• The intergenerational transmission of wealth and housing inequities perpetuates disparities in homeownership and housing stability across racial lines
• Overcoming the legacy of historical discrimination requires targeted interventions and investment in communities that have been systematically disadvantaged

Contemporary discriminatory practices

• While overt forms of housing discrimination have declined since the passage of the Fair Housing Act, more subtle and covert practices persist
• Steering, discriminatory lending, and biased algorithms in online housing platforms can limit housing choices and reinforce segregation
• Discrimination in the rental market, such as unequal treatment of applicants or selective enforcement of rental criteria, disproportionately affects communities of color
• Addressing contemporary forms of discrimination requires proactive testing, enforcement, and education efforts to identify and eliminate discriminatory practices

Role of socioeconomic factors

• Socioeconomic factors, such as income inequality and disparities in education and employment, contribute to housing segregation
• Lower-income households, which are disproportionately people of color, face limited housing options and may be confined to high-poverty, segregated neighborhoods
• Zoning regulations and land use policies that restrict the development of affordable housing in affluent areas can exacerbate economic and racial segregation
• Addressing the intersection of race and class in housing segregation requires policies that promote economic mobility, expand access to affordable housing, and foster inclusive communities

Challenges in achieving integration

• Achieving meaningful integration in housing faces various challenges, including:
  • Individual preferences and social networks that shape housing choices
  • Opposition to affordable housing development and concerns about property values
  • Limited enforcement of fair housing laws and weak incentives for integration
  • Fragmented local governance and the lack of regional cooperation on housing issues
• Overcoming these challenges requires a combination of legal, policy, and community-based strategies that promote integration and address the underlying causes of segregation
• Building public support for integration, fostering inclusive communities, and ensuring equitable access to resources and opportunities are critical components of achieving lasting change

Strategies to combat housing discrimination

• Combating housing discrimination and promoting fair housing requires a multi-pronged approach that involves legal, policy, and community-based strategies
• These strategies aim to address the root causes of discrimination, expand access to housing opportunities, and foster inclusive communities
• Effective interventions must be comprehensive, well-resourced, and sustained over time to achieve meaningful progress in reducing housing discrimination and segregation

Affirmatively Furthering Fair Housing

• Affirmatively Furthering Fair Housing (AFFH) is a legal requirement under the Fair Housing Act that requires federal agencies and recipients of federal housing funds to take proactive steps to promote fair housing
• The AFFH rule, implemented by the U.S. Department of Housing and Urban Development (HUD), requires jurisdictions to conduct assessments of fair housing, identify barriers to integration, and develop action plans to overcome those barriers
• AFFH encourages local governments to analyze patterns of segregation, disparities in access to opportunity, and disproportionate housing needs, and to take meaningful actions to address these issues
• Effective implementation of AFFH can help to dismantle the legacy of discriminatory policies and practices and promote more equitable and inclusive communities

Inclusive zoning and land use policies

• Zoning and land use policies play a significant role in shaping the availability and location of housing, and can either reinforce or mitigate patterns of segregation
• Inclusive zoning policies, such as density bonuses, inclusionary zoning, and reduced parking requirements, can incentivize the development of affordable housing in a wider range of neighborhoods
• Reforming exclusionary zoning practices, such as single-family zoning or minimum lot sizes, can expand housing choices and promote more diverse and integrated communities
• Implementing fair share housing policies, which require each municipality to provide its fair share of affordable housing, can help to distribute affordable housing more equitably across regions

Community reinvestment initiatives

• Community reinvestment initiatives aim to address the legacy of disinvestment and promote equitable development in historically disadvantaged neighborhoods
• The Community Reinvestment Act (CRA) requires banks to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods
• Strengthening and expanding the CRA can encourage banks to provide more lending, investment, and services in underserved communities, helping to revitalize neighborhoods and expand access to homeownership and affordable housing
• Community land trusts and other shared equity models can help to preserve affordable housing, prevent displacement, and build community wealth in neighborhoods facing gentrification pressures

Education and outreach efforts

• Education and outreach efforts play a critical role in promoting fair housing awareness, empowering individuals to assert their rights, and fostering inclusive communities
• Fair housing organizations and advocacy groups provide training, resources, and support to individuals, communities, and housing providers on fair housing laws and best practices
• Outreach campaigns can help to raise public awareness about housing discrimination, dispel myths and stereotypes, and encourage reporting of discriminatory practices
• Collaborative partnerships between fair housing organizations, community groups, and local governments can help to build broad-based support for fair housing and develop targeted strategies to address local challenges

Intersection with other forms of inequality

• Housing discrimination and segregation do not occur in isolation, but are deeply interconnected with other forms of social and economic inequality
• Understanding the intersectionality of housing discrimination with other dimensions of identity and disadvantage is crucial for developing comprehensive and effective strategies to promote fair housing and social justice
• Addressing housing discrimination requires attention to the ways in which multiple forms of inequality intersect and compound each other

Race, class, and gender

• Race, class, and gender are key dimensions of inequality that intersect with housing discrimination and segregation
• People of color, particularly Black and Latino households, face disproportionate rates of housing discrimination, segregation, and housing instability
• Low-income households, which are disproportionately headed by women and people of color, face significant barriers to accessing affordable and stable housing
• Women, especially single mothers and survivors of domestic violence, may face unique forms of housing discrimination based on their gender and family status
• Addressing the intersection of race, class, and gender in housing requires policies and practices that acknowledge and address the compounding effects of these forms of inequality

Disability and familial status

• Disability and familial status are protected classes under the Fair Housing Act, recognizing the unique forms of discrimination faced by these groups
• People with disabilities may face discrimination in the form of denial of reasonable accommodations, inaccessible housing designs, or stereotypes about their ability to live independently
• Families with children, particularly single-parent households, may face discrimination in the rental market or be steered towards certain neighborhoods based on stereotypes about family composition
• Ensuring equal access to housing for people with disabilities and families with children requires proactive enforcement of fair housing laws, as well as policies that promote accessible and affordable housing options

Sexual orientation and gender identity

• Sexual orientation and gender identity are not explicitly protected under the federal Fair Housing Act, but some states and localities have enacted laws prohibiting discrimination based on these characteristics
• LGBTQ+ individuals and families may face discrimination in the housing market based on their sexual orientation or gender identity, such as being denied rental applications or facing harassment from neighbors
• Transgender individuals may face particular challenges in accessing housing that aligns with their gender identity, and may be at higher risk of housing instability and homelessness
• Expanding fair housing protections to include sexual orientation and gender identity, and ensuring robust enforcement of these protections, is crucial for promoting equal access to housing for LGBTQ+ communities

Immigration status and national origin

• Immigration status and national origin are closely linked to housing discrimination and segregation, as immigrant communities and people of color often face overlapping forms of disadvantage
• Undocumented immigrants may face particular barriers to accessing housing, such as lack of credit history, language barriers, or fear of deportation
• Discrimination based on national origin, such as refusing to rent to individuals based on their accent or country of origin, is prohibited under the Fair Housing Act
• Ensuring equal access to housing for immigrant communities requires culturally responsive outreach, language access services, and policies that address the unique barriers faced by these groups

Current debates and future directions

• The field of fair housing continues to evolve, with ongoing debates and emerging challenges that shape the future direction of anti-discrimination efforts
• Current debates center around issues such as gentrification, the affordable housing crisis, reparations for historical injustices, and the