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Federal Housing Discrimination Still Hurts Home Values in Black Neighborhoods
Despite an urban real estate boom, the home-values gap for traditionally African-American neighborhoods is actually getting worse.
April 26, 2018 •
(Shutterstock) Housing values in American cities still break sharply along racial lines, showing the lingering impact of federal redlining in the 1930s, which devalued homes in African-American neighborhoods. The practice was outlawed decades ago, but its effects are still evident. In fact, according to a study published last week by real estate website Zillow, the disparity has grown even worse over the past two decades.
More than 80 years ago, the government determined which neighborhoods it considered risky for federal mortgage loans, outlining the riskiest neighborhoods in red. The determining factor was largely race, regardless of the economic status of the residents.
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