When we talk about homeownership and wealth building, we often focus on financial literacy—saving money, improving credit, and making smart investments.
But what if I told you that, for generations, the system was designed to keep certain people from building wealth through real estate?
In this conversation, we dive deep into the historical timeline of housing discrimination in America, how policies from over a century ago still shape today’s real estate landscape, and why understanding this history is crucial for anyone looking to buy a home.
1789–1934: The Foundation of Housing Inequality
1789: Private Property Rights & Slavery
The U.S. government ruled that Black individuals were not citizens—they were property. This meant they had no rights, no ability to own land, and no legal standing.
1865: The Freedman’s Savings and Trust Company
After the Civil War, formerly enslaved people were encouraged to deposit their earnings into the Freedman’s Bank. But what happened? The bank was raided, and today’s equivalent of $1.2 billion vanished.
1934: Redlining Begins
The Federal Housing Administration (FHA) was established under the New Deal. Sounds good, right? Except it introduced redlining, a policy where the government mapped out "high-risk" neighborhoods—code for Black and immigrant communities—and denied them loans.
This single act ensured that Black families were excluded from the biggest wealth-building tool in American history: homeownership.
1944–1974: Policies That Deepened the Divide
1944: The GI Bill Favors White Veterans
The GI Bill helped 63,000 white veterans buy homes, while fewer than 100 Black veterans received the same benefits. The loophole? Many Black applicants were denied based on local bank policies that still followed redlining maps.
1968: The Fair Housing Act
After Martin Luther King Jr.’s assassination, President Lyndon B. Johnson signed the Fair Housing Act, finally outlawing discrimination in real estate—but by then, white families had a decades-long head start in property ownership.
1974: The Equal Credit Opportunity Act
Lenders were prohibited from denying loans based on race. But just because something is illegal doesn’t mean it stops happening.
Present Day: The Lingering Effects of Housing Discrimination
Even though these discriminatory policies were repealed, their impact is still visible today:
- The racial wealth gap remains huge. White families are far more likely to own homes than Black or Latino families.
- Neighborhoods remain segregated. Redlining may be illegal, but the effects still shape housing patterns today.
- Big banks continue to get fined for discrimination. JPMorgan Chase, Wells Fargo, and Bank of America have all paid millions in settlements for racist lending practices—just in the last decade.
"I wanted to include this timeline in my book because too many people feel like they’re failing—like they did something wrong. But when you understand the history, you realize this system wasn’t built for you to win.”
Watch the Full Conversation
Want to hear the full breakdown of how past policies still affect today’s housing market? Watch this part of our conversation here:
Video Timestamp: 00:00:00 - 00:07:45
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In next post, we’ll discuss how to overcome these barriers and take advantage of today’s homebuying opportunities.
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