13 March 2025

Historic Real Estate Practices

• Blockbusting:

  • Definition: The practice where real estate agents convince one ethnic group to sell their homes at a low price due to the perceived threat of another ethnic group moving into the area.

  • Timeframe: Originated during the 1950s and 1960s in the United States.

  • Impact: Investors profited by buying homes cheaply and reselling them at higher prices to minorities, contributing to de facto segregation.

• Redlining:

  • Definition: A discriminatory practice in which banks refuse loans to individuals looking to purchase homes in certain areas deemed too risky.

  • Consequences: This practice reinforced segregation in cities and limited access to home ownership for specific racial/ethnic groups.

  • Enforceability: Although illegal, banks still find ways to avoid lending in minority neighborhoods, significantly impacting socio-economic status in those areas.

Concepts of Segregation

• De Facto Segregation:

  • Definition: Unintentional segregation resulting from societal practices rather than legal mandates.

  • Example: White families moving from urban centers to suburbs as minorities began to move into those neighborhoods.

  • Result: Creates an imbalance in demographics and resources in urban areas.

• White Flight:

  • Phenomenon where white families move to suburban areas due to the perceived threat posed by moving minorities, leaving behind economically disadvantaged neighborhoods.

Effects of Historic Practices

• Urban Segregation:

  • Neighborhoods have become racially and economically divided, particularly in cities like Chicago, Detroit, and Baltimore.

  • The impact is visible in socio-economic disparities and imbalanced services offered in different areas.

Food Deserts

• Definition: Areas with limited access to affordable and healthy food options, often prevalent in low-income neighborhoods.

• Challenges:

  • Limited grocery stores lead to increased fast food options, contributing to poor health outcomes, such as obesity and diabetes.

  • Accessibility issues arise because of economic constraints and distance from grocery stores.

Police and Crime Issues

• Crime Rates:

  • Cities with significant segregation, like St. Louis and Detroit, often see higher crime rates, correlating with poverty levels.

• Educational Disparities:

  • Poor neighborhoods typically have underfunded schools due to lower local tax revenues, resulting in poorer educational outcomes.

Gentrification

• Definition: The process where deteriorated urban neighborhoods undergo renewal, increasing property values and attracting new, typically more affluent residents.

• Positive Impacts:

  • Increases property values, attracts investments, and improves infrastructure.

• Negative Impacts:

  • Displaces long-term residents who cannot afford rising rents and property taxes.

  • May lead to socio-economic conflicts and worsen de facto segregation.

Urban Renewal Goals

• Focus on creating walkable neighborhoods and enhancing integration by zoning laws to maintain affordable housing within gentrifying areas.

Protests and Community Responses

• Residents often resist gentrification, fearing displacement and loss of community.

• Historical context includes notable events like Raisin in the Sun, illustrating the struggles of African American families facing neighborhood changes.

Squatter Settlements

• Definition: Informal housing developments that occur without legal claims, typically on the outskirts of urban areas in developing countries.

  • Challenges: These areas often lack infrastructure, sanitation, and adequate resources.

• Examples:

• Brazil: Favelas, characterized by inadequate basic services.

• India: Dharavi, a well-known slum reflecting high population density and informal economic activities.

Key Points for AP Exam Preparation

• Review housing policies, urban dynamics, and implications of segregation and gentrification.

• Understand significant terms like de facto, redlining, blockbusting, and gentrification.

• Pay attention to case studies reflecting these issues in specific urban areas.