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WHY TYPICAL BLACK FAMILY REMAIN SO MUCH POORER THAN THE TYPICAL WHITE FAMILY?- REAL ESTATE ECONOMICS

WHY TYPICAL BLACK FAMILY REMAIN SO MUCH POORER THAN THE TYPICAL WHITE FAMILY?- REAL ESTATE ECONOMICS
WHY TYPICAL BLACK FAMILY REMAIN SO MUCH POORER THAN THE TYPICAL WHITE FAMILY?- REAL ESTATE ECONOMICS
WHY TYPICAL BLACK FAMILY REMAIN SO MUCH POORER THAN THE TYPICAL WHITE FAMILY?- REAL ESTATE ECONOMICS
WHY TYPICAL BLACK FAMILY REMAIN SO MUCH POORER THAN THE TYPICAL WHITE FAMILY?- REAL ESTATE ECONOMICS
Housing has long played a crucial role in American wealth accumulation: People buy homes with federally subsidized mortgages, build up equity and pass the assets on to their children. But as recently as the 1960s, government policy excluded blacks. In a practice known as redlining, the Federal Housing Administration designated predominantly black neighborhoods as no-go zones for government-insured mortgage loans. The FHA also wouldn’t guarantee loans for new mixed-race developments: The presence of even a single black family was enough to warrant rejection.

Using data on sales and mortgage rates, the researchers calculated how much each family’s payments exceeded what they would have been if the property had been purchased at the prevailing market price with a conventional mortgage loan. The outcome: Black families were overcharged somewhere between $3.2 billion and $4 billion (in 2019 dollars). 

The investors involved don’t necessarily act with racist intent. They exploit blacks because that’s where the opportunity is. But the effect is the same: So if you ever find yourself in a predominantly black neighborhood, wondering why everyone seems so poor, know this: It’s largely because white people, possibly even you or your ancestors, stole from them and their ancestors. The more Americans recognize this deep, tragic flaw in the fabric of our society, the greater the chance that we can find a remedy.

https://finance.yahoo.com/news/black-poverty-rooted-real-estate-140036276.html

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