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WaPo: racist redlining allows investors to buy cheap real estate in Black neighborhoods to jack up rent and fees, evict people

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Raftina

Raftina

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Jun 27, 2020
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Neighborhoods where a majority of residents are Black have been heavily targeted, according to a Washington Post analysis of Redfin data. Last year, 30 percent of home sales in majority Black neighborhoods were to investors, compared with 12 percent in other Zip codes, The Post's analysis shows.

"We know historically that places where minorities live are undervalued or lower priced," Redfin's Sheharyar Bokhari said. That, he said, makes them more attractive to investors, driving up prices for residents.
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"One of the reasons housing prices have gotten so out of control, is that corporate America sensed an opportunity," said Sen. Sherrod Brown (D-Ohio) last week at a hearing of the Senate Committee on Banking, Housing and Urban Affairs, a panel he chairs.

Brown took direct aim at private equity firms and corporate landlords in particular.

"They bought up properties, they raised rents, they cut services, they priced out family home buyers, and they forced renters out of their homes," he said.
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In other cases, investors buy properties that might otherwise be the first home purchases for families looking to accrue wealth that they can pass down to their children or grandchildren. A lower homeownership rate among minorities has contributed to a much lower rate of wealth accumulation.

"There is a massive racial homeownership gap in this country, which is a serious problem because owning a home is a key to building intergenerational wealth and reducing racial inequality overall," Sen. Robert Menendez (D-N.J.) said.
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sangreal

sangreal

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Oct 25, 2017
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This article has nothing to do with redlining (which is illegal) which you seem to have injected into the title yourself. It doesn't even make sense as investing in minority neighborhoods is the opposite of redlining. That's not to say it's good that these homes are being bought up
 
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