Saturday, May 8, 2010

Blockbusting and Redlining

Blockbusting is a rapid change in racial composition of residential areas in American cities due to a mass out migration of white people (white flight). THis is caused by real estate agents that want to profit quickly. They stir up fear in white neighborhoods to get the people to move away and then encourage people of color to buy the properties that white people just left.

Redlining is an illegal act that banks engage in where they draw lines on a map to identify which areas they will refuse to loan money to. The families who want to fix up their homes in poor homes would have a hard time getting the money and adding to urban deterioration.

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