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The Legacy of Racial Covenants in Housing

Mar 25, 2025

Racial Covenants and Segregation in the United States

Introduction to Racial Covenants

  • Event Background: In 1909, William Simpson, a Black resident, was pressured by a white neighborhood in Minneapolis to leave after buying land.
  • Result: This incident led to the creation of the first racially restrictive covenant in Minneapolis a few months later.

Definition and Purpose of Racial Covenants

  • Covenants: Legal agreements in property deeds regulating property use.
  • Racial Use: Used to prevent selling or leasing to certain racial and ethnic groups, especially Black people.

Spread and Legalization

  • Timeframe: Widely adopted between 1920 and 1950.
  • Prevalence: More than 25,000 homes in Minneapolis County had racial covenants.
  • Federal Role: The US Federal Housing Administration endorsed racial covenants in their underwriting manual.

Impact on Urban Development

  • Levittown, New York (1947): Prototype of postwar American suburb restricted to Caucasians, except for servants.
  • Suburban Expansion: Contributed to "white flight," increasing segregation and car dependency.

Government Policies and Redlining

  • G.I. Bill: Provided favorable lending rates, but racial covenants limited access for people of color.
  • Redlining: Government labeled neighborhoods of color as bad investments, making it difficult to secure mortgages.

Long-term Effects on Wealth and Health

  • Wealth Disparity: People of color often rented instead of owning homes, hindering wealth accumulation.
  • Health Impacts: Industrial development in redlined neighborhoods increased pollution-related health issues.

Legal Challenges and Ban

  • Court Challenges: Racial covenants were challenged and banned under the Fair Housing Act of 1968.
  • Current Statistics: As of 2020, homeownership rates were 74% for white families and 44% for Black families in the US.

Continuing Discrimination and Segregation

  • Current Issues: Discrimination persists in housing through various means, such as gentrification and exclusionary zoning.
  • Legacy: Despite being illegal, racial covenants' impacts are visible in existing housing deeds and urban demographics.

Conclusion

  • Summary: Racial covenants have played a significant role in shaping the segregation and inequality seen in US cities, affecting both wealth distribution and living conditions.
  • Ongoing Issues: While banned, the legacy of racial covenants continues to influence housing and demographic patterns.