Ohio Students Calesta Holloway and Spencer Marshall discuss the prevalence of systemic racism and its effects on housing across the United States…

 S: Racism is prevalent in many things we fail to recognize each day. In housing it is extremely common. What are some examples of housing  injustices you have seen or experienced?

C: When I think about racism in housing, I first think about how it was against the law for people of color to purchase homes in “suburban” neighborhoods. This lasted until the 60’s when the Fair Housing Act was passed. This lack of being able to purchase homes in better neighborhoods allowed for overcrowding in urbanized areas. This also meant that there were no homes to be passed down to families. Meaning the spread of inequity in home ownership can be explained by the many minorities that did not own land or property at the time due to the many years of slavery they had endured in early generations. Therefore, unlike their white counterparts, there was nothing to give to the following generations to ensure continuation of wealth.  

C: Since Black Americans own homes at a lower rate, what is the result? How might that encourage racism?

S: Since Black Americans many aren’t able to get into homes, their only alternative is to rent. Many times, they make the same amount as the white homeowner. When they rent and don’t build equity, they are left with nothing to show for the money they used on rent. This unfortunately forces them to live in less desirable areas where there are accessible rentals. 

 

S: Fair Housing legislation was passed to protect the rights of minorities in housing. What are some areas where these laws still don’t allow for equal housing opportunities? 

 C: Although the Fair Housing Act was passed it has never really been enforced. This is evident by the inability or lack of Department of Housing and Urban Development (HUD) houses in the suburban area. Houses supported by HUD are usually found in urban areas that are already minority filled. This doesn’t mean that Black Americans are being prevented from buying houses in suburban areas. However, Black American may typically have higher debt to income ratios that prevent them from being able to purchase homes in the better suburban areas. This higher debt to income ratio can be attributed to the salaries inequalities. Black Americans tend to have a lower wage in pay versus other races. Therefore, they rely on borrowing money or being forced to succumb to debt by not paying bills.

 

C: In most statistics about homeownership and race Indigenous Americans are usually left out. Why do you think that is? 

S: There could be a multitude of reasons for this. It could simply be that there is not a large enough population to accurately find these statistics. Or it could be that their statistics are roped in with other minorities. Indigenous Americans are unfortunately among one of the lowest earning classes in America so it would be interesting to see if there are any statistics regarding Indigenous Americans. 

 

C:Why are suburban areas considered to be better living areas versus urbanized areas?

S: The ideal location of one’s housing should be decided by the homeowner. If someone would like to live in an urban setting, then they should be able to. The opposite is also true. Families should be afforded the apple opportunity to consider living in either setting. Unfortunately, things like Section 8 housing or other government subsidized living areas do not afford the same opportunities. 

 

C:With wealthier White Americans buying homes in urbanized areas, do you think that this process of gentrification is helping or hurting racial disparities in home ownership and why or why not? 

C: I think the gentrification of neighborhoods is one of the best things for equal housing. When a neighborhood becomes gentrified, those who still own homes in an area reap the benefits of increased property values. This also allows them to see their property value increase even more if they were to decide to make improvements. 

 

C: In what other ways can urbanized areas become more desirable? What changes would need to occur? 

S: As you said before, gentrification of neighborhoods is an extremely important step towards making urban communities more desirable for all socioeconomic backgrounds. Also, increased government spending in areas of high crime/lower income may make certain areas more desirable.

C: In what ways do you think high crime rates affect homeownership? 

S: For many folks, homeownership is something that is a major investment. So when high crime rates are present in areas where you are making a major investment, people tend to steer clear of these areas. It is for these reasons that landlords buy up the properties for cheap and rent to lower income individuals. 

C: How do you think income disparities play into homeownership?

S: I would say that income disparities certainly do play into homeownership. This goes for all races as those who make less can’t afford as much house as others. However, this brings up the idea of how education in the homebuying process can lead to two different outcomes off of the same level of income. 

 

S: When it comes to homeownership, Black people own their homes at a significantly lower rate than other races. What do you think could be some reasoning for this?

S: I personally think this is a result of lack of education on what it takes to be approved and how one establishes a credit score before they buy a home. Calesta, what do you think?

C: I think it’s a mixture of lack of education on the approval process and understanding your credit score. I also believe that it is the process of previous years of homeownership and property management. Due to several stacking years of oppression the gap of disparity is at an extreme that unfortunately we have not been able to close the gap after all these years. 

 

S: What are some ways you recommend that we can bridge the gap in homeownership by race? 

C: In order to bridge the gap in homeownership I think there needs to be earlier education on credit score importance and home buying education. Meaning as early as high school there needs to be some form of education that helps minorities in their future, this includes homebuying. Without proper education and understanding of the importance of real estate the homeownership gap may never be closed. I also think that by providing a program where abandoned houses can be restored for a lower rate or reimbursement would not only help make urban areas more desirable but also help close the homeownership gap.

 

C: Do you think other minority groups are affected by the homeownership gap attributed by race? What disparities do you think play a role into their inequality if you believe there are any?

S: I believe that the homeownership gap is prevalent with other minorities in addition to Black Americans. I believe the same disparities are present with them that face Black Americans. They face the same lack of education and exposure to the process that in turn puts them at a disadvantage in the home buying process.

 

C: Would you consider Indigenous homeownership a problem even though the Indigenous groups technically own the land? 

S: This is an excellent point. Indegenous Americans often own the land and most of the business within their area. This could be a result of how there is not as much data regarding their rates of homeownership. Since they may not be recording their transactions with conventional real estate agents or mortgage lenders .

 

S: Beyond the lack of knowledge on the subject, why do you think that Black Americans have the lowest homeownership rate compared to all races?

C: Besides there being a lack of knowledge, I believe there is a certain level of fear that is associated with home buying. There is fear of breaking out of a comfort zone or what they are used to and there is a fear of denial. Comfort from the constant nature of living and renting.  Then the denial meaning not worthy of owning a home. A sense of rejection for not making enough money or having the means to maintain a home. Black Americans have been told they are not good enough to vote, own property, or even be provided the same education and healthcare. Therefore, I feel there has been so much oppression for the black community that they unfortunately do not have the confidence to want to seek to purchase a home. Therefore, their homeownership rates are much lower compared to any other race.

 

C: Do you think there are any similarities between the way Black Americans and Indigenous Americans are forced into oppressive lifestyles through homeownership? 

S: I don’t believe that there is any one thing that is causing this. I think that the fact that they are often forced into rental situations automatically puts them at a disadvantage when building their futures. I do think that renting for a lifetime  and not building equity is certainly a factor when it comes to building a future. However, this is not to say renting is not the best option for many. Homeownership can often be a large task and require money that many folks just don’t have. 

 

This conversation took place between Spencer Marshall and Calesta Holloway.