Households headed by people of color living in King County, Washington – the area where Seattle is located – have lost an estimated $12 billion to $34 billion in wealth since the 1950s because of racist housing policies. That’s according to a report commissioned by King County, which was first reported this week in The Seattle Times.
Thank you for reading this post, don't forget to subscribe!Report, conducted by consulting firm ECONorthwestfound that the large sum of property lost was not only attributable to racially discriminatory policies and practices including redlining, but also to money that went into paying rent that did not help set up a house property growth used to do.
The report also described a “loss of wealth due to lower home value appreciation for homes owned by people of color compared to white people,” according to the report.
Looking specifically at black families in King County, the estimated inter-generational wealth loss since 1950 is estimated to be between $5.4 billion and $15.8 billion, and the report also details some of the policies identified as racist is included.
“The lower estimate is based on inflation adjustments and the higher estimate is based on S&P 500 growth,” said a summary of the report released to county leaders.
This includes policy dating back to 1855, 34 years before the territory’s admission to the Union as a state, when “the first territorial governor of Washington forced indigenous tribes in the territory to leave their lands and move to reservations,” According to summary.
The report also identified federal policies tolerated by state and federal governments that contributed to the depression of wealth for people of color, including the 1934 establishment of federal housing administration (FHA) that “encouraged communities to adopt racial deed restrictions for single-family zoning and mortgage insurance, thereby encouraging the practice of redlining,” the summary states.
“Discriminatory practices and policies in the government, banking and real estate industries are hindering access to home ownership.” [Black, Indigenous, People of Color (BIPOC)] Home and family today,” the summary said. “These discriminatory practices negatively impact the credit scores, mortgage access and general financial security of BIPOC households, such that achieving home ownership remains a significant and unacceptable barrier.”
In May, Wash. Governor Jay Inslee (D) signed a series of bills designed to address the state’s housing issues, particularly those related to supply and housing affordability.
According to a previous Seattle Times report, such a bill would aim to “help those who were affected by racist housing contracts designed to keep ethnic and religious minorities out of certain neighborhoods, as well as their descendants.” with down payment and closing costs”. , Sponsors say it is the first statewide bill of its kind.
