Homeownership segregation

2022
india

Homeownership segregation refers to the separation of individuals or families into different neighborhoods or communities based on their race, ethnicity, or socioeconomic status.

This form of segregation occurs when certain groups, typically minority or low-income populations, are excluded from accessing homes in desirable or affluent neighborhoods. It can be a result of various factors, including discriminatory practices such as redlining, which involved denying mortgage loans or insurance to individuals in certain areas based on their race or ethnicity.

Homeownership segregation perpetuates inequality and can lead to unequal access to quality education, healthcare, and other resources. It also impacts generational wealth accumulation, as homeownership is often seen as a primary way to build wealth and pass it on to future generations. This form of segregation has long-lasting effects on communities and contributes to the perpetuation of racial and economic disparities.

Efforts to address homeownership segregation include fair housing laws and programs aimed at providing affordable housing in all neighborhoods, as well as initiatives to promote financial literacy and access to mortgage loans for marginalized communities.

Further reading

Kulkarni N.; Malmendier U. (2022) "Homeownership segregation", Journal of Monetary Economics, 129(), pp. 123-149. Elsevier B.V.. DOI: 10.1016/j.jmoneco.2022.05.001

Molloy R. (2022) "Discussion of “Homeownership segregation”", Journal of Monetary Economics, 129(), pp. 150-152. Elsevier B.V.. DOI: 10.1016/j.jmoneco.2022.04.002