Colored-headed households in King County, Washington (where Seattle is located) have lost an estimated $12 billion to $34 billion in wealth since 1950 due to racist housing policies. That’s according to a report commissioned by King County and first reported by The Seattle Times this week.
Reports conducted by consulting firms eco north westthe total amount of wealth lost is attributed not only to racist policies and practices, including redlining, but also to funds devoted to paying rent that did not help establish increased household wealth. was also found to be the cause.
The report also describes “wealth lost because homes owned by people of color appreciate less than those owned by whites.”
Looking specifically at Black households in King County, the loss of intergenerational wealth since 1950 has been estimated at $5.4 billion to $15.8 billion, a policy identified in the report as racist. It also includes an overview of some of the
A summary of the report issued to county leaders states that “lower bound estimates are based on inflation adjustments and upper bound estimates are based on S&P 500 growth.”
This included policies dating back to 1855, 34 years before the region joined the Union as a state, when “Washington’s first territorial governor ceded and reserved land to the indigenous tribes in the area. They forced me to move to the ground.” to overview.
The report also identified federal policies tolerated by state and federal governments that contributed to the decline in wealth for people of color, such as the establishment of the federal government in 1934. Federal Housing Administration The (FHA) “encouraged communities to accept single-family residential subdivisions covered by mortgage insurance and limits on racial conduct, and encouraged redlining practices,” the outline states.
“Discriminatory practices and policies in government, banking and the real estate industry continue to hinder access to home ownership. [Black, Indigenous, People of Color (BIPOC)] households today,” explained the synopsis. “These discriminatory practices have adversely impacted BIPOC household credit scores, access to mortgages and general financial security, making home ownership a significant and unacceptable risk. It is a big hurdle.”
In May, Washington Gov. Jay Inslee, a Democrat, signed a series of bills aimed at addressing the state’s housing problems, particularly related to supply and housing affordability.
According to an earlier Seattle Times report, one such bill was “affected by racist housing codes aimed at keeping ethnic and religious minorities out of certain neighborhoods. The aim is to support those who have been affected and their descendants with down payments and closing costs. . It’s the first statewide bill of its kind, according to sponsors.