As February unfolds and we honor Black History Month, it is a good time to shed light on the aspects of history less discussed – history that persists in the shadows of progress. Here in the Seattle/King County area, and many parts of the U.S., persistent discrimination confronts Black Americans in many walks of life – including residential real estate.
Despite legislative strides, the echoes of bias continue to resonate through the decades, leaving a stark reminder of the long journey toward true equality.
Since the early years of Seattle’s development, discriminatory practices have been woven into the very fabric of the community. Redlining, which denied loans or insurance to certain neighborhoods based on racial composition, cast a long shadow for decades over Black communities and the residents chasing homeownership.
Redlining perpetuated economic disparities by limiting the accumulation of generational wealth. The results are still visible, as certain neighborhoods bear the burden of historical discrimination. Between 2000 and 2021, Harvard researchers noted, the number of high-poverty census tracts in the U.S. – those with poverty rates above 20% – grew more than 50% to 20,241 areas. Many are in Black-majority neighborhoods in slower-growth U.S. cities.
The enactment of the Fair Housing Act in 1968 was a pivotal moment in the fight against discrimination. However, the journey towards equality has proved to be painstakingly long and difficult. Bias is still present but in more subtle forms.
Seeking a mortgage as a person of color continued to be daunting. Discriminatory lending practices, such as higher interest rates and denials based on race, persisted long after legislation ruled the actions illegal. The dream of homeownership remained elusive for many, perpetuating a cycle of inequality.
Even for those who managed to overcome the hurdles and own a home, the struggle did not end. Racial bias extended to home appraisals. Studies have shown significant disparities in home valuations based on the race of the homeowner. The presence of Black owners in a home often resulted in lower appraisals compared to when white individuals were substituted – actions that have led to historic settlements.
A recent analysis of single-family home data over three years ending in 2021 uncovered recent bias. It showed that white-majority areas enjoyed higher price adjustments on appraisals during the pandemic than predominantly Black areas.
Seattle, known for its progressive values, is not immune to these challenges. People of color typically have less access to quality education, are underemployed, pay a higher percentage of their income for housing and are more likely to experience adverse health outcomes that can shorten life expectancy.
The city’s rapid growth and development have led to increased housing demand, exacerbating existing disparities. As the skyline climbs into the clouds, squeezing more people into the area, the question remains: Are we all benefiting from this growth or are some being left behind?
It is disheartening to acknowledge that despite decades of legal battles and societal progress, discrimination in our industry continues. The disappointment lies not only in the existence of these biases but also in the fact that they persist beneath the surface, subtly shaping the landscape of our communities.
As we reflect on this history in a special month, it is crucial to confront the uncomfortable truths. Acknowledging the existence of discrimination is the first step towards dismantling its structures. Seattle, with its commitment to progress, must actively address these issues, fostering an inclusive real estate landscape that ensures equal opportunities.
Fortunately, actions taken by our legislators in Olympia – and reported often, including last month – are making inroads with Washingtonians. Locally, King County Council last year heard a proposal to consider reparations to minorities for the years of real estate bias in our area.
The history of discrimination in Seattle’s real estate industry is a sobering reminder that the journey toward equality is ongoing. As we navigate the complexities of our past, let us strive to create a future where every individual – regardless of race, color, national origin, religion and other protected classes – can pursue the dream of homeownership without facing the effects of discrimination.