In 1933, the United States Congress created the Home Owners’ Loan Corporation (HOLC). With foreclosures rising as a result of The Great Depression, the task of the agency was to provide new low-interest mortgages to both homeowners and private mortgage lenders. Between 1993 and 1936, the agency served about one million households.
By 1935, the parent company of the agency (the Federal Home Loan Bank Board) decided to initiate something called the “City Survey Program.” The idea was to look at local real estate trends – including the racial and ethnic composition of the country’s largest cities – in order to get a better understanding of how to manage all of these outstanding loans.
One outcome of this program was the creation of the HOLC’s infamous “residential security maps.” (Philadelphia’s is shown at the top of this post.)
These were maps that categorized city neighborhoods according to 4 grades. Grade A neighborhoods (green) were the best ones. They were ethnically homogenous and had room to be further developed. Grade B neighborhoods (blue) were the second-best ones. They were already completely developed, but were still considered desirable. Grade C neighborhoods (yellow) were starting to decline and showed an “infiltration of a lower grade population.” And finally, grade D neighborhoods were considered “hazardous” and colored in red. These neighborhoods had low homeownership rates, old crappy housing, and an “undesirable population”, which, at the time, largely referred to Jews and African Americans.
Some have argued that the HOLC and their “residential security maps” are what kicked off systematic mortgage discrimination in America’s inner city neighborhoods – later referred to as “redlining.” This was the practice of denying credit to people who lived in these undesirable neighborhoods (and even to real estate developers who wanted to build in these undesirable neighborhoods).
But University of Pennsylvania professor Amy Hillier has argued that these maps simply reflected the ethos of the time period. Using a sampling of HOLC mortgages, she found that 62% of them were issued to grade D (red) neighborhoods. The agency, itself, was not actually redlining in practice.
Furthermore, she also looked at private mortgages issued in Philadelphia between 1937 and 1950 and found that security grade rating actually had no impact on the total number of loans issued. She did, however, discover slightly higher interest rates for properties located near and in the bottom security grades.
All of this is to say that “redlining” is likely not the only culprit for inner city decay. There are other factors at play.
To that end, the National Bureau of Economic Research recently published a working paper, which I discovered through CityLab, called, “Racial Sorting and the Emergence of Segregation in American Cities.” The key finding here is as follows:
“Our preferred estimates suggest that white flight was responsible for 34 percent of the increase in segregation over the 1910s and 50 percent over the 1920s. Our analysis suggests that segregation would likely have arisen in American cities even without the presence of discriminatory institutions as a direct consequence of the widespread and decentralized relocation decisions of white urban residents.”
In other words, it wasn’t just mortgage discrimination; it was also just general discrimination. That actually makes a lot of sense, because, if you think about it, the former couldn’t have occurred without the latter being present.
Here’s how the research paper puts it (via CityLab):
“Policies that reduce barriers faced by blacks in the housing market may thus not prevent or reverse segregation as long as white households have the ability and desire to avoid black neighbors.”
(Note: Most of the information and data used in this post was sourced from the work and research of Amy Hillier.)
Last week Oliver Moore of the Globe and Mail announced that Toronto mayor John Tory’s SmartTrack transit plan is evolving to feel less like SmartTrack and more like what Metrolinx had been planning all along.
Here’s the map from the Globe and Mail:
The 3 big changes are as follows (and numbered accordingly on the above map):
1.
The western end of the line will be replaced by an extension of the Eglinton-Crosstown LRT (currently under construction) running from Mount Dennis to Pearson Airport. This is what was originally proposed.
2.
The “U” running from Mount Dennis in the west, down through downtown, and up to Kennedy in the east is what remains of the original SmartTrack line and will operate as some sort of “heavy rail” service on existing GO Transit lines. The original election campaign plan was to run trains every 15 minutes, but that was deemed too infrequent to attract riders, so now Metrolinx and everyone is trying to figure out how to get it down to every 5-10 minutes and feel more like subway.
I love the work that LSE Cities (London School of Economics) is doing with Urban Age. If you haven’t yet checked out their site, you should do that now. If you’re a city geek, it’s the kind of site you can get lost in for hours. Especially if you’re a sucker for great diagrams like I am.
Here’s one I found today that shows where cities are growing in the world:
In 1933, the United States Congress created the Home Owners’ Loan Corporation (HOLC). With foreclosures rising as a result of The Great Depression, the task of the agency was to provide new low-interest mortgages to both homeowners and private mortgage lenders. Between 1993 and 1936, the agency served about one million households.
By 1935, the parent company of the agency (the Federal Home Loan Bank Board) decided to initiate something called the “City Survey Program.” The idea was to look at local real estate trends – including the racial and ethnic composition of the country’s largest cities – in order to get a better understanding of how to manage all of these outstanding loans.
One outcome of this program was the creation of the HOLC’s infamous “residential security maps.” (Philadelphia’s is shown at the top of this post.)
These were maps that categorized city neighborhoods according to 4 grades. Grade A neighborhoods (green) were the best ones. They were ethnically homogenous and had room to be further developed. Grade B neighborhoods (blue) were the second-best ones. They were already completely developed, but were still considered desirable. Grade C neighborhoods (yellow) were starting to decline and showed an “infiltration of a lower grade population.” And finally, grade D neighborhoods were considered “hazardous” and colored in red. These neighborhoods had low homeownership rates, old crappy housing, and an “undesirable population”, which, at the time, largely referred to Jews and African Americans.
Some have argued that the HOLC and their “residential security maps” are what kicked off systematic mortgage discrimination in America’s inner city neighborhoods – later referred to as “redlining.” This was the practice of denying credit to people who lived in these undesirable neighborhoods (and even to real estate developers who wanted to build in these undesirable neighborhoods).
But University of Pennsylvania professor Amy Hillier has argued that these maps simply reflected the ethos of the time period. Using a sampling of HOLC mortgages, she found that 62% of them were issued to grade D (red) neighborhoods. The agency, itself, was not actually redlining in practice.
Furthermore, she also looked at private mortgages issued in Philadelphia between 1937 and 1950 and found that security grade rating actually had no impact on the total number of loans issued. She did, however, discover slightly higher interest rates for properties located near and in the bottom security grades.
All of this is to say that “redlining” is likely not the only culprit for inner city decay. There are other factors at play.
To that end, the National Bureau of Economic Research recently published a working paper, which I discovered through CityLab, called, “Racial Sorting and the Emergence of Segregation in American Cities.” The key finding here is as follows:
“Our preferred estimates suggest that white flight was responsible for 34 percent of the increase in segregation over the 1910s and 50 percent over the 1920s. Our analysis suggests that segregation would likely have arisen in American cities even without the presence of discriminatory institutions as a direct consequence of the widespread and decentralized relocation decisions of white urban residents.”
In other words, it wasn’t just mortgage discrimination; it was also just general discrimination. That actually makes a lot of sense, because, if you think about it, the former couldn’t have occurred without the latter being present.
Here’s how the research paper puts it (via CityLab):
“Policies that reduce barriers faced by blacks in the housing market may thus not prevent or reverse segregation as long as white households have the ability and desire to avoid black neighbors.”
(Note: Most of the information and data used in this post was sourced from the work and research of Amy Hillier.)
Last week Oliver Moore of the Globe and Mail announced that Toronto mayor John Tory’s SmartTrack transit plan is evolving to feel less like SmartTrack and more like what Metrolinx had been planning all along.
Here’s the map from the Globe and Mail:
The 3 big changes are as follows (and numbered accordingly on the above map):
1.
The western end of the line will be replaced by an extension of the Eglinton-Crosstown LRT (currently under construction) running from Mount Dennis to Pearson Airport. This is what was originally proposed.
2.
The “U” running from Mount Dennis in the west, down through downtown, and up to Kennedy in the east is what remains of the original SmartTrack line and will operate as some sort of “heavy rail” service on existing GO Transit lines. The original election campaign plan was to run trains every 15 minutes, but that was deemed too infrequent to attract riders, so now Metrolinx and everyone is trying to figure out how to get it down to every 5-10 minutes and feel more like subway.
I love the work that LSE Cities (London School of Economics) is doing with Urban Age. If you haven’t yet checked out their site, you should do that now. If you’re a city geek, it’s the kind of site you can get lost in for hours. Especially if you’re a sucker for great diagrams like I am.
Here’s one I found today that shows where cities are growing in the world:
3.
The extension north of Eglinton Avenue to suburban Markham (in the northeast) is being pushed out and will be dealt with sometime in the future. Keeping the first phase of SmartTrack south of Eglinton on both ends is beneficial in avoiding the issue of SmartTrack and the Scarborough subway extension cannibalizing each other. (In my opinion, this issue is a perfect example of what happens when transit planning becomes too political.)
The net result is a plan that is looking less and less like the original SmartTrack. I’m not complaining though because I have never been a big supporter of SmartTrack. I have always thought we should be focusing on the downtown relief subway line and on allowing Metrolinx to just execute on its regional express rail (RER) strategy.
For more on this topic, check out Steve Munro’s post, SmartTrack: Now You See It, Now You Don’t! He’s far more of an expert than I am on these sorts of issues.
Each circle represents a city (well, metropolitan area). The dark green dot is the city’s population in 1950. The lighter green dot is the city’s population in 1990. And the yellow dot is the city’s projected population by 2025. Click here for a larger version of the map.
What’s fascinating about this diagram is that you can so clearly see how the most significant population growth has shifted away from the West to the rest of the world and in particular Asia. That is, those dots have more yellow than green.
We, of course, already knew this was happening. And population is just one dimension. But it’s still interesting to see this in diagram form. We are living through the rise of the East. And this diagram is a reminder of that.
3.
The extension north of Eglinton Avenue to suburban Markham (in the northeast) is being pushed out and will be dealt with sometime in the future. Keeping the first phase of SmartTrack south of Eglinton on both ends is beneficial in avoiding the issue of SmartTrack and the Scarborough subway extension cannibalizing each other. (In my opinion, this issue is a perfect example of what happens when transit planning becomes too political.)
The net result is a plan that is looking less and less like the original SmartTrack. I’m not complaining though because I have never been a big supporter of SmartTrack. I have always thought we should be focusing on the downtown relief subway line and on allowing Metrolinx to just execute on its regional express rail (RER) strategy.
For more on this topic, check out Steve Munro’s post, SmartTrack: Now You See It, Now You Don’t! He’s far more of an expert than I am on these sorts of issues.
Each circle represents a city (well, metropolitan area). The dark green dot is the city’s population in 1950. The lighter green dot is the city’s population in 1990. And the yellow dot is the city’s projected population by 2025. Click here for a larger version of the map.
What’s fascinating about this diagram is that you can so clearly see how the most significant population growth has shifted away from the West to the rest of the world and in particular Asia. That is, those dots have more yellow than green.
We, of course, already knew this was happening. And population is just one dimension. But it’s still interesting to see this in diagram form. We are living through the rise of the East. And this diagram is a reminder of that.
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