Phone No: + 1 888 464 8188
GROWTH by NCRC
  • Notification
  • Menu Canvas
    • ABOUT US
      • Core Values
      • Meet Our Team
      • NCRC
    • PROPERTIES
    • INSPIRATION
    • PARTNERS
    • RESOURCES
      • FAQs
      • Careers
      • Homeownership Blog
      • News
      • Events
      • Mortgage Calculator
Phone No: + 1 888 464 8188
Follow Us:
GROWTH by NCRC
  • ABOUT US
    • Core Values
    • Meet Our Team
    • NCRC
  • PROPERTIES
  • INSPIRATION
  • PARTNERS
  • RESOURCES
    • FAQs
    • Careers
    • Homeownership Blog
    • News
    • Events
    • Mortgage Calculator

Racism and Homeownership–Sabotaging the American Dream

Homepage Growth Blog Racism and Homeownership--Sabotaging the American Dream
Growth Blog, Growth News

Racism and Homeownership–Sabotaging the American Dream

September 7, 2021
By Admin
0 Comment
128 Views

Racism and Homeownership:  How Racism Sabotages the American Dream

Blog

September 2021

Race plays a significant factor in the home-lending industry from mortgages to appraisals.   According to the The Markup report, co-published with the Associated Press, Latino, Asian and Pacific Islander, Native American, and Black applicants continue to experience discrimination during the mortgage approval process.  But Blacks encountered discrimination more than any other demographic group.  In fact, Black people  were 80% more likely to be denied for a mortgage than white people with similar credit, debt-to-income ratios, purchase price and down payment (Blain).  In some metro areas, the disparity between white and black mortgage denials was greater than 250% (Martinez and Kirchner).

“Black people  were 80% more likely to be denied for a mortgage than white people with similar credit, debt-to-income ratios, purchase price and down payment.”

Racism and Homeownership

Discriminatory and exclusionary housing and lending practices are not new; they are rooted deeply in our American history.  In the 1930s, the federal government created the Home Owners’ Loan Corporation (HOLC) to make it easier for Americans to own homes.  Black Americans were deliberately excluded through a practice called redlining.  In 1944, the GI Bill was created.  It, too, replicated the same pattern of racial discrimination in housing shutting out almost ALL of the 1.2 million Black Americans that served their country in World War II (Blakemore).

Despite the passage of the 1968 Fair Housing Act, the 1974 Equal Credit Opportunity Act, and the Community Reinvestment Act (CRA) of 1977, racial disparity in home ownership persists, and through it the growing racial wealth gap in America today.  In fact, the Black homeownership rate is 30% less than that of whites and 22% less than the national average (Blain).  Add to that skyrocketing prices, record-low inventory, fierce competition from institutional investors, material and labor increases, and we have a recipe for a gap that will become enormous.

“The Black homeownership rate is just 44%–over 30% less than that of whites,”

Too many Americans—working families, people of color, Millennials—are being locked out and left behind.  Despite the efforts to address equality in housing, the Markup report reveals that, then, as now, exclusionary and discriminatory policies are firmly in place.  Access to safe, decent and affordable homeownership has not improved for far too many people.  Is there an end in sight?

 

Works Cited

Blain, Keisha N. “Home Hunting While Black: How Racism Sabotages the American Dream.” MSNBC, NBCUniversal News Group, 4 Sept. 2021, www.msnbc.com/opinion/home-hunting-while-black-how-racism-sabotages-american-dream-n1278488.

Blakemore, Erin. “How the GI Bill’s Promise Was Denied to a Million Black WWII VETERANS.” History.com, A&E Television Networks, 21 June 2019, www.history.com/news/gi-bill-black-wwii-veterans-benefits.

Martinez, Emmanuel, and Lauren Kirchner. “The Secret BIAS Hidden In Mortgage-Approval ALGORITHMS – the Markup.” The Markup, 25 Aug. 2021, themarkup.org/denied/2021/08/25/the-secret-bias-hidden-in-mortgage-approval-algorithms.

Tags: Affordable homeownership American Dream CRA discriminatory lending GI Bill housing discrimination Racism and Homeownership Redlining

Previous Story
The Breakdown of the $3.5 Trillion Senate Budget
Next Story
Go Big or Go Home: The $3.5T Senate Infrastructure Bill

Related Articles

From Wall Street: Forget Owning. Rent the American Dream Instead

Despite what Wall Street says, homeownership is the cornerstone of...

Single parent homebuyers

Tips for Single Parents Looking to Buy a Home

Purchasing a home can be difficult for many, but even...

Mortgage Payments

mortgagecalculator
Follow Us:

Tags

affordable homeowernship Affordable homeownership affordable homes Affordable Homes Atlanta Affordable Homes in Birmingham affordable housing Appraisal Discrimination Atlanta Homeownership Build Back Better Chicago Homes for sale CRA Decatur Housing Discrimination in Appraisals discriminatory lending Energy Efficiency fair housing fair housing act fair housing rules FHFA first time homebuyer first time homebuyers GROWTH by NCRC Homebuyers homeownership housing housing affordability housing counseling housing crisis housing discrimination housing inventory HUD impact of redlining Infrastructure bill LMI housing new construction New Construction Birmingham New Construction Chicago New construction Parma Heights Redlining Senate Bill Spring maintenance spring maintenance checklist spring maintenance tips what is redlining winter home checklist

Talk With Us

    Recent Post

    • Spring Cleaning Tips for a Sparkling Home Monday, 22, Mar
    • GROWTH by NCRC Managing Director Ed Gorman Leads Affordable Homeownership Session at NCRC’s Just Economy Conference Monday, 27, Jun
    • Many Americans Resort to Risky Financing to Purchase a Home Friday, 15, Apr
    • From Wall Street: Forget Owning. Rent the American Dream Instead Friday, 1, Apr
    • GROWTH Story: Why Our Life-Changing Mission is so Important to Me. Saturday, 26, Mar
    • Tips for Single Parents Looking to Buy a Home Tuesday, 22, Mar

    Our Partner

    GROWTH is an initiative of the National Community Reinvestment Coalition (NCRC), designed to create pathways to homeownership for low- and moderate-income (LMI) individuals and families while improving property values for LMI communities.

    Contact Us

    • 740 15th St NW, Suite 400, Washington, DC 20005
    • Phone: 888-464-8188
    Contact Us

    Quick Links

    • Find Your Home
    • Partner With Us
    • Resources
    • Careers
    • Blog
    • News
    • Events
    Copyright ©2020 GROWTH by NCRC. All Rights Reserved | Terms | Privacy | Code of Conduct | DMCA
    SearchPostsLogin
    Monday, 22, Mar
    Spring Cleaning Tips for a Sparkling Home
    Monday, 27, Jun
    GROWTH by NCRC Managing Director Ed Gorman Leads Affordable Homeownership Session at NCRC’s Just Economy Conference
    Friday, 15, Apr
    Many Americans Resort to Risky Financing to Purchase a Home
    Friday, 1, Apr
    From Wall Street: Forget Owning. Rent the American Dream Instead
    Saturday, 26, Mar
    GROWTH Story: Why Our Life-Changing Mission is so Important to Me.
    Tuesday, 22, Mar
    Tips for Single Parents Looking to Buy a Home
    Saturday, 19, Mar
    Birmingham Mayor Woodfin, GROWTH by NCRC Deliver Affordable Homeownership

    Welcome back,