6WRM0202Short3_Why Race Matters Transcript

The National Housing Act of 1934, signed by President Franklin D. Roosevelt, founded the Federal Housing Administration or FHA to improve housing conditions during the Great Depression. 

This access did not extend, however, to Black and other historically marginalized groups. And instead furthered housing discrimination through a policy known as redlining, marking in red on government-sponsored maps where Black and other communities of color lived or lived nearby. This indicated to appraisers that these neighborhoods were too risky to insure mortgages. 

At the same time, the FHA subsidized the production of new suburban communities for white families with the requirement that none of the homes be sold to Blacks. This meant Black families and other families of color were relegated to urban housing projects. 

The Fair Housing Act of 1968 sought to end these discriminatory practices, but the legacy of redlining remains. In the first quarter of 2022, the national home ownership rate for white families was approximately 74% compared to 44% for Black families. The racial home ownership gap is even greater in Wisconsin, and it continues to grow. 

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