What is Redlining. Negative Impact on society

There are many factors of Institutional racism and white supremacy prevalent in today’s societies all the way from Capitol Hill to our Communities. This paper examines one of the root causes of how Communities of Color are underfunded, underrepresented and taken advantage of from the enactment of the National Housing Act of 1934 to present day 2018

The racial isolation, discrimination and segregation in and all around the United States of America clearly stems from a mixture of past and present policies. These policies which spur Racism were implemented from private and federal interests. These policies no longer exist so blatantly as they do now yet they are still 100% in
effect whether legal or not. Alexis C Madrigal states that  policies such as the National Housing Act of 1934 created by the Federal housing association encourages inequality although it may not be a policy anymore the legacy of redlining lives on and effects communities every day.  Despite all of the huge housing hurdles people of color have had to experience throughout history ‘redlining’ may be the most well known.


Redlining is solely based on Racism and Racial Profiling.  The reason is because it is the act of denying services such as healthcare and food access, even supermarkets were mapped to be built as far as possible from communities of color, specifically African American communities. The bank would also raise housing prices based on the ethnicity or race of the community members, increasing the asking price when African American people were looking to buy ho
use, forcing them to rent which at anytime can lead to eviction and prevent future property investment for generations to come causing economic inequality.  A well known example would be from the book Federal Lending and Redlining Redlining is the nickname for the way in which banks evaluated the security of a property value for a loan transaction.” The banks would not insure mortgages in and near African-American neighborhoods. Brand new subdivisions and housing developments were only built for whites with requirement that African Americans cannot purchase one. 

This act of racism, segregation and discrimination all in one housing policy, Redlining, would send a ripple effect of economic inequality throughout generations causing a of lack of funding for schools, city services and African American residents in the community. According to the William & Mary Bill of Rights Journal, The FHA wrote out maps that were highly segregated yet know although redlining still clearly prevails, it remains illegal for the federal government to segregate races.  Liquor Lining has taken way throughout poverty-stricken, low- income communities across America, where a high amount of liquor stores and Marijuana shops are placed in communities of color, residents are taken advantage of due to lack of community resources and density of liquor shops promoting substance abuse and addiction.

The Government taking the power residents have away purposely  through impairing abilities and increasing likelihood for addiction creating an environment where gateways from reality are on every street corner.   

You may wonder how Redlining and the FHA’s policy of redlining effects America now, This now illegal policy has left an enormous impact on today’s societies. Redlining made it impossible for Blacks to invest in and own property which according to blackdemographics.com makes 57.5% of African Americans renters. Now with the cost of living in the U.S surpassing income Americans on average make, many houses are being foreclosed on and tenants evicted. This is common all over the world, Cities and Suburbs big to small. Yet, also occurring in metropolitan cities such as Chicago, New York, Atlanta and Los Angeles. Rents are being raised and community members displaced out of their homes so majority majority white middle-upper class young people move in, this disparity is otherwise known as gentrification.

Redlining played a huge negative role in shaping the socio economic status of cities and suburbs across the U.S. Which to this day has caused economic inequality for people of color and set a base for renters and vulnerable homeowners to join the half million whom are already homeless. Still to this day communities of color have a lack of  resources and funding from the U.S Government due to White Supremacy in Government and roots of the founding of the United States of America.





I do not own the Pictures in this article. They are from online.

Posted by Lily Larsen

I am a 17-year-old​ activist/arts advocate and have been participating in marches, protests and petitions since I was 5 years old. I serve on Mayor Garcetti's Youth Council for South LA. And have generated a petition to ban factory farming in California with over 55,000 signatures. I organize community events and get teens like me connected with social justice issues and activism all over LA.

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