The Reality of New York’s Segregated Housing Market
New York City is a world-wide symbol of diversity; the city is home to speakers of over 800 languages, over 3 million citizens born outside of the country, and is one of the few metropolitan areas in the U.S. where no ethnic group makes up more than 40% of the population. However, underlying the melting pot image of New York’s cultural diversity is a centuries-long struggle that entangles both race and class in a conflict for one of the most essential elements of wellbeing: housing.
Though New York City may be among the most diverse cities in the world, the conditions and standards of living for New Yorkers is far from equitable. NYC ranks as the fourth most residentially segregated city nationally, and the city’s schools and commuting regions are ranked as the most segregated in the country. Nearly half of the 59 community districts that make up New York City are occupied by a single ethnic group.
All of this, of course, works to the disadvantage of historically disenfranchised and marginalized communities, particularly Black New Yorkers. The long history of housing segregation in New York reveals a dark underbelly of racism and xenophobia that still affects families of color in New York City today, and affects every facet of the lives of every New Yorker.
The History of Segregated Housing
The ownership of land has always been a central tenet to the American pursuit of happiness. As such, the history of land ownership has been shaped by the structural racism that lies at the core of the machinations of American culture and economics. The collosal disparity in the distribution of land and wealth between white and non-white Americans before the Great Depression was codified and exacerbated by New Deal housing programs, particularly the Federal Housing Administration (FHA) and the Home Owner’s Loan Corporation (HOLC).
The FHA was responsible for the housing boom of the mid-20th century, issuing and insuring mortgages to American families so that they would be able to afford homes. But the FHA took a two tiered approach to insuring mortgages, following the guidelines from breakdowns of residential areas issued by the HOLC. The HOLC would essentially grade the quality of neighborhoods based on whiteness, or lack thereof. Neighborhoods that were predominantly or entirely White were considered safe for FHA backing, whereas neighborhoods occupied by Black people or immigrants were not. As such, the ability of Black Americans to get a mortgage to purchase a house was astronomically lower than that of white Americans.
This practice of “redlining”, named after the “red” coloring of Black neighborhoods by the HOLC, led to the economic decline of traditionally Black neighborhoods in New York City, some of which, particularly in the Bronx, are still among the most impoverished neighborhoods in New York City today. Decades of redlining prevented Black New Yorkers the accumulation of wealth from assets in housing and employment in more affluent neighborhoods that were afforded to white New Yorkers.
Despite changes in housing codes and the introduction of the Fair Housing Act in 1968, which outlawed discrimination in selling or renting housing, white homeownership nationally still dwarves Black ownership; in 2016, 69% of white American families owned homes, compared to 44% of Black families. The stark segregation of ethnic communities in New York City today is a direct effect of racist practices such as redlining, which stunted the growth of poor, Hispanic and Black neighborhoods and frightened many white New Yorkers into either fleeing to the suburbs or staying in predominantly white neighborhoods.
Market Discrimination
Though the Fair Housing Act made it illegal for parties to discriminate in the practice of selling or renting housing, discriminatory practices in the marketing and selling of homes and apartments still influence the New York housing market. In particular, brokers and real estate agents regularly participate in discriminatory practices when selling or showing homes to potential buyers to increase commissions or to maintain the value of a particular neighborhood.
“Racial steering”, the practice of pushing white clients towards expensive white neighborhoods and away from cheaper neighborhoods primarily occupied by people of color and vice versa, is commonplace for New York City brokers. More expensive neighborhoods bring in higher commissions for brokers, and maintaining the value of an expensive (and very white) neighborhood ensures high commissions in the future for brokers.
Brokers will normally share less information to Black clients and sometimes steer them away from traditionally white neighborhoods. This, in tandem with the fact that Black neighborhoods in New York City have far less brokers than white and Asian neighborhoods, creates a more restrictive buying market for Black New Yorkers, who are often confined to historically Black or impoverished neighborhoods. A number of studies, including one from Princeton University, have suggested that clients of color are less likely to even receive calls back from landlords or brokers, despite the illegality of racial discrimination in selling and renting housing.
Know Your Rights
Housing should not be determined by one’s race or ethnic background. This may not seem like a controversial statement, but the reality of its segregated housing market makes it clear that the melting pot of New York City is not free of systemic racial discrimination. All aspects of life- employment, schooling, commuting, and general quality of life- are inextricably tied to housing and residency, and until New York’s housing is truly desegregated, there will be no racial equality in the city.
If you or someone you know feel that you have been a victim of housing discrimination, reach out to Fair Housing NYC. Additionally, read up on your rights as a resident of New York City through the Office of the Attorney General.
