Editing Redlining (section)

=== Race wealth gap ===
{{Main|Racial inequality in the United States#Racial wealth gap|Socioeconomic mobility in the United States}}The practice of redlining actively helped to create what is now known as the [[Racial inequality in the United States#Racial wealth gap|Racial Wealth Gap]] seen in the United States.<ref name=":0">{{Cite web |title=Systematic Inequality |last1=Hanks |first1=Angela |last2=Solomon |first2=Danyelle |last3=Weller |first3=Christian E. |website=Center for American Progress |date=February 21, 2018 |url=https://www.americanprogress.org/issues/race/reports/2018/02/21/447051/systematic-inequality/ |access-date=2018-12-17}}</ref>

Black families in America earned just $57.30 for every $100 in income earned by white families, according to the Census Bureau's Current Population Survey. For every $100 in white family wealth, black families hold just $5.04.<ref>{{Cite news |last=Badger |first=Emily |date=2017-09-18 |url=https://www.nytimes.com/interactive/2017/09/18/upshot/black-white-wealth-gap-perceptions.html,%20https://www.nytimes.com/interactive/2017/09/18/upshot/black-white-wealth-gap-perceptions.html |title=Whites Have Huge Wealth Edge Over Blacks (but Don't Know It) |work=The New York Times |access-date=2018-12-18 }}</ref> In 2016, the median wealth for black and Hispanic families was $17,600 and $20,700, respectively, compared with white families' median wealth of $171,000.<ref name=":0" /> The black-white [[wealth gap]] has not recovered from the Great Recession. In 2007, immediately before the Great Recession, the median wealth of blacks was nearly 14 percent that of whites. Although black wealth increased at a faster rate than white wealth in 2016, blacks still owned less than 10 percent of whites' wealth at the median.<ref name=":0" />

A multigenerational study of people from five race groups analyzed upward mobility trends in American cities.<ref>{{Cite report|doi=10.3386/w24441 |title=Race and Economic Opportunity in the United States: An Intergenerational Perspective |year=2018 |last1=Chetty |first1=Raj |last2=Hendren |first2=Nathaniel |last3=Jones |first3=Maggie R. |last4=Porter |first4=Sonya R. |id=NBER Working Paper No. w24441 |doi-access=free}} Later published as: {{Cite journal |doi=10.1093/qje/qjz042 |title=Race and Economic Opportunity in the United States: An Intergenerational Perspective |year=2019 |last1=Chetty |first1=Raj |last2=Hendren |first2=Nathaniel |last3=Jones |first3=Maggie R. |last4=Porter |first4=Sonya R. |journal=The Quarterly Journal of Economics |volume=135 |issue=2 |pages=711–783 |doi-access=free}}</ref> The study concluded that black men who grew up in racially segregated neighborhoods were substantially less likely to gain upward economic mobility, finding "black children born to parents in the bottom household income quintile have a 2.5% chance of rising to the top quintile of household income, compared with 10.6% for whites." Because of this intergenerational poverty, black households are "stuck in place" and are less able to grow wealth.

A 2017 study by Federal Reserve Bank of Chicago economists found that redlining—the practice whereby banks discriminated against the inhabitants of certain neighborhoods—had a persistent adverse impact on the neighborhoods, with redlining affecting homeownership rates, home values and credit scores in 2010.<ref>{{cite journal |doi=10.1257/pol.20190414 |title=The Effects of the 1930s HOLC 'Redlining' Maps |date=2021 |last1=Aaronson |first1=Daniel |last2=Hartley |first2=Daniel |last3=Mazumder |first3=Bhashkar |journal=American Economic Journal: Economic Policy |volume=13 |issue=4 |pages=355–392 |s2cid=204505153 |url=https://www.chicagofed.org/~/media/publications/working-papers/2017/wp2017-12-pdf.pdf }}</ref><ref name=":16">{{Cite news |url=https://www.nytimes.com/2017/08/24/upshot/how-redlinings-racist-effects-lasted-for-decades.html |title=How Redlining's Racist Effects Lasted for Decades |last=Badger |first=Emily |date=2017-08-24 |work=The New York Times |access-date=2017-08-26 }}</ref> Since many African-Americans could not access conventional home loans, they had to turn to predatory lenders (who charged high interest rates).<ref name=":16" /> Due to lower home ownership rates, slumlords were able to rent out apartments that would otherwise be owned.<ref name=":16" />