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Running head: Discrimination in the Housing MarketDiscrimination in the Housing MarketLogan DunnEnglish 2201East Carolina University
Discrimination in the Housing MarketDiscrimination in the Housing MarketIn 2004, the home-ownership rate in the United States was 76 percent whites, but only 49.7 percent African Americans, and only 48.1 percent Hispanics (Zhao, Ondrich, & Yinger.) Pertaining to racism in America, race is seen as a bigger issue now than it ever has. While we continue to make progress, we are not doing enough. According to a more recent study done in 2013, “29 percent of African Americans were denied conventional mortgages, compared to 22 percent of Hispanics, 14 percent of Asians, and only 11 percent of whites (Lamb).” It is not only disheartening, but disturbing to see how racism still persists in the 21st century. Discrimination by both real estate agents and property owners has created a vicious cycle of neighborhood inequality that multiple laws can not even put a stop to. However, it is important for society to shed a light on the dark side of real estate agencies to fully understand the effects of discrimination within the housing market. Redlining/ BlockbustingRedlining and blockbusting practices have both been subtly taking place in the housing market since the early 20th century. Redlining is trying to persuade minorities towards neighborhoods that consist of people of the same racial or ethnic background, which this tends tobe lower income and more dangerous neighborhoods. Redlining also includes refusing to show minorities certain neighborhoods that are considered all white neighborhoods. The Home Owners Loan Corporation (HOLC) decided to rate neighborhoods by four colors: green, blue, yellow, and red. The green neighborhoods were all white neighborhoods that were considered to be the most affluent and desirable, and the blue neighborhoods were seen as good areas, but they were just average. However, the yellow and red neighborhoods were avoided by most, especiallythe red. Red areas contained low income neighborhoods ridden with crime, “Red spots on the 2
Discrimination in the Housing Marketmap are danger signs (Hoagland & Stone.)” Real estate agents only showed African Americans the red neighborhoods instead of the green, resulting in redlining leaving African Americans withpractically nothing. “While white residents took advantage of the opportunity, African American