In the early 20th century, a practice known as redlining became a systematic tool of racial segregation and inequality in the United States. Though it’s been outlawed for decades, the effects of redlining are still felt by Black communities today. Redlining was a government-backed policy that denied Black families access to mortgages and homeownership in certain neighborhoods, based on their race. This practice not only trapped Black people in poverty but also created barriers to wealth-building, education, and community development that continue to impact Black families across generations.
In this blog post, we’ll dive into the history of redlining, how it shaped the landscape of racial inequality in housing, and why its legacy continues to affect Black communities in significant ways.
1. What Was Redlining?
Redlining refers to a discriminatory practice that started in the 1930s, where the federal government and private banks systematically denied mortgages to Black families and other communities of color. This was done by marking certain neighborhoods on maps with red ink, which indicated that these areas were “too risky” for investment. The reasoning behind this “risk” was often tied to the racial makeup of the neighborhood rather than actual economic factors.
The Home Owners’ Loan Corporation (HOLC), a federal agency, was responsible for creating these redlined maps, which were then used by banks to decide whether to approve home loans. Neighborhoods predominantly inhabited by Black families or other people of color were often marked as “hazardous,” making it nearly impossible for residents to purchase homes or secure loans for home improvements.
In short, redlining kept Black families from owning homes in areas with higher property values, greater access to quality schools, and better employment opportunities.

2. The Effects of Redlining on Black Communities
The long-term effects of redlining have been profound and continue to affect Black communities today. Here’s how this practice shaped the experiences of Black families:
- Denial of Homeownership: Homeownership has long been a key way for Americans to build wealth. For Black families, however, redlining blocked access to homeownership in desirable neighborhoods, locking them out of the chance to build equity. As a result, Black families were often forced to rent in areas with lower property values, which limited their ability to accumulate generational wealth.
- Disinvestment in Neighborhoods: Because redlined areas were deemed “unfit” for investment, many of these neighborhoods were systematically neglected by both government and private institutions. This led to a lack of infrastructure, poor schools, and underfunded community services. Without access to resources or investment, neighborhoods that were predominantly Black faced economic stagnation.
- Education and Employment Barriers: Redlining not only kept Black families from owning homes in better neighborhoods but also contributed to a cycle of poverty. Schools in redlined neighborhoods were often underfunded, which resulted in a lower quality of education. This lack of access to quality education made it more difficult for Black children to access higher education and better job opportunities, further entrenching the cycle of inequality.
- Health and Safety Impacts: Redlined neighborhoods often lacked investment in health services, public parks, and other amenities that contribute to overall well-being. These areas were also more likely to be located near industrial zones, exposing residents to pollution and health hazards. As a result, Black communities living in these areas faced higher rates of chronic illnesses, mental health challenges, and lower life expectancy.
3. How Redlining Continues to Affect Black Communities Today
The effects of redlining did not disappear with the official end of the practice in the 1960s. In fact, its legacy still shapes housing patterns and wealth distribution today.
- Wealth Inequality: Homeownership remains one of the primary ways that American families build wealth. Because redlining denied Black families the opportunity to purchase homes in areas that appreciated in value, many Black families were never able to build the wealth that could have been passed down through generations. Today, Black Americans have less wealth on average than white Americans, with a significant portion of that wealth gap stemming from the lack of homeownership opportunities.
- Segregation of Communities: Though redlining ended decades ago, the legacy of segregated housing patterns remains. Many predominantly Black neighborhoods continue to face high levels of poverty and limited access to quality education and healthcare. Redlined areas are often still underfunded, and neighborhoods remain segregated by race and income. As a result, Black communities still face barriers to upward mobility.
- Access to Loans and Mortgages: Discriminatory practices similar to redlining still exist today. Black families often face greater challenges when applying for loans or mortgages, even in areas where redlining maps no longer exist. Studies show that Black applicants are more likely to be denied home loans and are often charged higher interest rates than white applicants, even when they have similar credit scores.
- Neighborhood Disinvestment: The lack of investment in historically redlined neighborhoods has left many Black communities struggling to catch up. Even in cities where gentrification is happening in other parts of town, many redlined neighborhoods remain economically depressed. The disinvestment that started with redlining has created long-lasting effects on local businesses, public services, and housing stock, making it difficult for these communities to thrive.

4. What Can Be Done to Address the Legacy of Redlining?
While the practice of redlining is illegal today, the impact it has had on Black communities is still felt. To truly combat the legacy of redlining, several actions must be taken:
- Affordable Housing Policies: Policies that promote affordable housing, such as increasing funding for housing subsidies or incentivizing the construction of affordable homes in underfunded areas, can help provide access to homeownership for Black families.
- Investment in Redlined Neighborhoods: Revitalizing historically redlined neighborhoods through targeted investment in infrastructure, schools, healthcare, and businesses is critical. By reinvesting in these communities, we can help break the cycle of disinvestment and provide opportunities for growth and development.
- Addressing Discriminatory Lending Practices: To combat the lingering effects of discriminatory lending, we must enforce anti-discrimination laws that ensure Black families have equal access to mortgages and loans. Support for policies like the Fair Housing Act and Community Reinvestment Act can help reduce modern-day discrimination in the housing market.
- Education and Workforce Development: Investing in education and workforce development programs in historically marginalized communities can help create economic opportunities for Black families. By providing access to quality education and job training, we can help lift entire communities out of poverty.
- Legal and Policy Advocacy: Continued advocacy from civil rights organizations and lawmakers is essential to hold institutions accountable for discriminatory practices and push for policies that address the legacy of redlining.
Conclusion: The Fight for Housing Equality Continues
Redlining was a deliberate attempt to deny Black families access to homeownership and the opportunities that come with it. Though the practice is no longer legal, its legacy continues to affect Black communities, contributing to wealth inequality, segregation, and lack of opportunity. Understanding the impact of redlining is essential in addressing the persistent racial disparities that still exist today.
To make meaningful progress, we must advocate for policies that promote housing equality, investment in disenfranchised communities, and an end to discriminatory lending practices. Only by confronting the history and legacy of redlining can we begin to build a more equitable future for Black families and communities.


Redlining may have ended decades ago, but its legacy continues to impact Black communities today—limiting wealth, opportunities, and equality. Learn why addressing redlining’s impact is crucial for justice. #HousingEquality #BlackCommunities


















