valecia hanna

A Tale of Two Cities: The Struggle to Build Generational Wealth Within Baltimore's Black Community

By Valecia Hanna

According to Michael Harriot, from as early as the 1910s minorities have been faced with the challenge of experiencing the downside of segregated housing (2019). Baltimore, one of the most historically black cities, was plagued by this institutionalized inequity which served as one of the main reasons of continued disadvantages for black residents. Redlining was essentially developed by the Home Owner’s Loan Corporations (HOLC) during the Great Depression as a solution to relieve America from its economic drought (Harriot 2019). However, as the government attempted to reconstruct the economy, redlining created disproportionate housing opportunities between whites and minorities. This practice resulted in the biased behaviors by realtors, who instead of concentrating on assessing the value of one’s property, selected to focus their attention on the race of the population of a given area.

Gentrification, which is usually sold as a “beacon of hope,” is now mirroring patterns of segregated housing that blacks thought they had overcome decades ago. As new developments begin to occupy low-income neighborhoods, black renters are not only being displaced by whites, but so are black homeowners. Homeowners are seeing the cultural and historic values of their neighborhood changing, leading to the feeling of being alienated from one’s own home and community. As a result, black homeowners in Baltimore are now searching for new ways to protect their home values in the midst of gentrification.

Shedding light on the systemic racism in housing is critical in the discussion of homeownership disadvantages experienced by blacks. Property values, both historically and currently, are calculated based on the concentration of blacks and whites in a geographical area, rather than the quality of the structure itself. Danyelle Solomon concluded in his 2019 study that the disproportionate rate of property values between blacks and whites is so severe that if the pattern continues the average black family would need over 200 years to match their white counterparts’ value of wealth. These findings are not surprising in light of the decades-long practice of redlining and other discriminatory practices.

In comparing two Baltimore neighborhoods, the relationship between property value and race is evident and shows that blacks are still haunted by the effects of redlining. According to the Baltimore Neighborhood Indicators Alliance (2017), the Druid Hill area, which is predominantly black, has home values averaging around $127,000, whereas Bolton Hill, adjacent to Druid Hill and predominantly white, has homes averaging at $270,000. Homes in each neighborhood are similar in features, size, and structure; however, presumably, Druid Hill’s racial identity makes it disproportionately less valued. Over time, as values stay low, so too does the potential equity, which pales in comparison to homes in the white Bolton Hill neighborhood. These circumstances are barriers for blacks to move upward in their socioeconomic status and to establish generational wealth for those behind them. And as new development projects begin to flood black neighborhoods, the wealth gap between blacks and whites will remain disproportionate.

Some black homeowners recognize the inequality and are finding ways to beat the system. One unconventional trend that recently developed is anticipating new developments in the community for the sole purpose of increased property value to generate a profit from their home. Longtime resident of Druid Hill, Afrikiia Robertson, reflects on her family’s experience of living in a gentrified area: “I think with the influx of gentrification activities, it has made my family and others in my neighborhood hopeful that with the influx of white residents, [We don’t have a lot, but we have enough], they would help to raise the property value.’

Most news stories about gentrification focus on the impact, ignoring the factors that lead some Black homeowners to sell their homes. “I think my mom’s hope is that she will be able to see a return on a generational investment.” Robertson said, as she describes the tough decision her family plans to make. However, if more black homeowners follow this trend, black neighborhoods will lose both their cultural value and social importance. Unfortunately, the selling of homes provides greater opportunities to some who want to improve their social and economic situation at the expense of something perhaps even more valuable - history.

In city after city, the effects of redlining, and now gentrification, steadily perpetuates racial and ethnic inequality in homeownership. These practices, along with other social factors, devalues the cultural and historical importance of black spaces in major metropolitan areas. This issue is not deemed as a priority because the people impacted often have few options, little influence, and do not realize the extremity of this issue, which is the impact it has on black generational wealth. It can also be that the presence of inequality within neighborhoods limits the opportunity for minorities to have the platform for their voice to be heard. Nevertheless, this issue should be at the forefront of Baltimore’s efforts to defeat institutionalized racism.

Works Cited

Harriot, Michael. 2019. “Redlining: The Origin Story of Institutional Racism.” The Root, 25        April 2019.

Solomon, Danyelle, et al. “Systemic Inequality: Displacement, Exclusion, and       Segregation.” Center for American Progress, 7 Aug. 2019.