What is Redlining?

In the Beginning...

A Map Of Redlining

Before Mortgages, America Was a Nation of Renters.

For most of American history, Homeownership wasn't the norm— Most Americans had three options:

1. Live in company-owned housing—where your employer controlled both your job and your home.

2. Pay a landlord indefinitely—with no path to ownership, no equity, and no way out.

3. Work the land as a tenant farmer—renting farmland with no guarantee of ever owning it.

4. ​At their peak, there were over 2,500 company towns where entire communities were not just housed but entirely controlled by their employers.

The company owned the homes—workers paid rent straight from their paychecks. The company owned the stores—and many paid workers in "scrip," company-issued money only usable at company-owned shops. The company owned the schools, hospitals, and utilities, keeping every aspect of daily life under corporate control.

Because workers had no other housing options, they paid whatever the company charged—for rent, groceries, medical care, even school supplies for their kids. And since wages were often paid in scrip, money never left the company's pockets—it just cycled back into its own businesses.

This wasn't just a housing arrangement. It was an economic trap.

For those who weren't in company towns, renting was still the only option for many because mortgages were out of reach.

Down payments were 50% of the home's cost—an unattainable sum for most families. Loan terms lasted only 5-10 years, ending with a balloon payment, meaning buyers had to come up with enormous sums quickly. If you couldn't pay off the balance at the end, you lost the house.

Renting itself wasn't the problem—it was the lack of alternatives that allowed landlords and corporations to set the rules with no competition.

This wasn't just a housing issue—it was a cycle that kept people from building wealth.

The 1930s: Opening the Door to Homeownership—But Not for Everyone

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When the Great Depression hit, it became clear: A strong economy needed strong homeowners.

That's when the amortized mortgage changed everything. This new structure spread payments over 20, 30, even 40 years—making Homeownership possible for millions.

It worked. Families that had spent generations as renters could finally invest in homes. The housing market rebounded. The middle class took shape. The American Dream was no longer just a fantasy—it was within reach.

For some.​

Behind the policies that built the mortgage system was a blueprint for separation—an ideology rooted in the belief that different socioeconomic groups should be kept apart. 

Mortgage guidelines justified restricting access to financing in certain communities as a way to "protect property values" and ensure "neighborhood stability." It ensured that:

🔹 Selective communities were offered the opportunity to build wealth, while others remained in the predatory rental cycle. Minorities had no access, regardless of their socioeconomic status.

🔹 Investment poured into areas, outlined in blue and green, creating America's middle class, while areas outlined in yellow and red - were systematically left behind. Areas outlined in red were deemed hazardous: no loans would be backed by the US government.

​This was redlining. And it created a head start for some and a race uphill for others.

​​​The Ripple Effect of Homeownership: Why It Matters for Everyone

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The expansion of Homeownership in the 1930s didn't just help individual families—it transformed the economy, created stability, and fueled innovation. However, the selective nature of these policies also sent a clear message:

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🚨 Some communities were worth the investment. Others were not.

By deciding where resources would flow and where they wouldn't, America didn't just shape housing—it shaped who had access to opportunity and who would be left behind.

But now, the question isn't just about what went wrong—it's about how we move forward.

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1️⃣ Generational Wealth & Financial Security

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🔹 Families who were able to purchase homes early built long-term financial stability, allowing them to invest in education, businesses, and future generations.

🔹 Meanwhile, communities that were denied access to loans were left without a path to build wealth, forcing families to remain in cycles of renting, often in under-resourced neighborhoods.

🔹 Expanding access to Homeownership today means more families can build wealth and pass it down, strengthening the economy for everyone.

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💡 When more people have access to ownership, entire communities become financially stronger.

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2️⃣ Thriving Neighborhoods & Economic Growth

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🔹 The long-term impact of early redlining stifled investment in certain communities, leaving them without the same infrastructure, business opportunities, and public services.

🔹 Well-resourced communities create better schools, safer streets, and more opportunities for the next generation.

🔹 Homeownership encourages long-term investment, increasing property values and supporting small businesses, local jobs, and economic development.

🔹 When neighborhoods receive equitable investment, they attract new industries and become hubs for innovation and progress.

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💡 A thriving housing market doesn't just benefit homeowners—it benefits businesses, schools, and entire cities.

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3️⃣ A Stronger, More Resilient Nation

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🔹 Higher homeownership rates lead to stronger local economies—boosting consumer spending, increasing tax revenues, and ensuring financial stability for more Americans.

🔹 Balanced development strengthens national security, reducing economic disparities and fostering unity.

🔹 Investing in under-resourced areas doesn't just correct past imbalances—it fuels future economic expansion.

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💡 When we ensure that all communities have the resources to succeed, the entire country thrives.

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Race Against Redlining: A Call to Action

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The history of housing policy shaped the America we live in today, but the story isn't finished. We have the power to rewrite the future.

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🚨 Now, we have work to do.

The goal of Race Against Redlining is to make sure as many people as possible understand the full impact. Because before we can fix the problem, we have to see it.

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🔹 Most people don't realize redlining's impact still exists today.🔹 Most people don't know these decisions still shape the economy, housing markets, and generational wealth.🔹 Most people don't see how reversing these policies benefits everyone.

That's why we need you.

🗣 Step One: Spread the word. Share this page.📚 Step Two: Learn more. Knowledge is power.✊ Step Three: Get involved. Because the best way to change the future is to start now.

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Always Know: The Power of Information

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The first step to fixing a broken system is understanding it.

That's why we created Always Know—a movement to ensure that every homeowner, every renter, and every American understands the forces that shape where we live, how we build wealth, and how we create change.

Because when you know better, you can do better.

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🏡 When Homeownership is within reach, the economy grows.🌍 When communities have resources, the nation stabilizes.💡 When opportunity is fair, innovation thrives.

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The past was drawn in red ink. The future is still wide open.

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Spread the word. Get involved. Be part of the solution.

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Always Know.