Category: Built Environment

Laura Diaz-Villaquiran

Hover over the map to click through the slideshow. Click on image to view full image.

Data Source: Mapping Inequality: Redlining in New Deal America Dataset;  U.S. Forest Service Tree Canopy Cover (TCC) Dataset; Maps: SEEA.

Few things have impacted cities today as much as the suite of policies and practices that segregated neighborhoods on the basis of race over more than a century. Housing segregation had existed in practice for decades before the 1910s when white policymakers enacted the first racial zoning laws. Although these laws were declared unconstitutional by the United States Supreme Court in 1917, white city officials throughout the South still found ways to advance racial residential segregation.

In the 1920s and 1930s, segregation was taken up by the federal government in the form of “redlining,” the practice of denying financial lending – particularly for home purchases or improvements – to people based on their race or ethnicity and what neighborhood they lived in. For instance, the federal Home Owners’ Loan Corporation (HOLC) developed a series of maps that used the racial makeup of city neighborhoods to guide mortgage lending practices based on their assessment of the risk of lending. HOLC devised a four-tiered system that characterized neighborhoods in more than two hundred cities as A – best, B – still desirable, C – declining, and D – hazardous. These ratings were largely based on the racial makeup of a neighborhood, with C and D ratings typically having a larger share of racial and ethnic minorities than neighborhoods that rated A and B.

HOLC maps had less of an impact on private markets than often suggested, but they guided Federal Housing Administration (FHA) lending decisions for decades. Beyond that, they are also a spatial reflection of generations of policies and programs that segregated American cities, with far-reaching consequences that still shape cities today.

Using tree canopy cover data from the U.S. Forest Service, this month’s map explores the relationship between redlining and urban tree canopy. In three cities (Columbia, Jackson, and Memphis), we find that formerly redlined neighborhoods have about half the level of tree canopy today than historically white neighborhoods.

In Memphis, Tennessee, formerly redlined neighborhoods have an average tree canopy covering 20% of the neighborhood, while neighborhoods rated “A” have canopies that cover about 43% of their land area. In Jackson, Mississippi, formerly redlined neighborhoods had an average tree canopy of 24%, while neighborhoods rated “A” have 50% canopy cover. In Columbia, South Carolina, formerly redlined neighborhoods had 15% tree canopy, compared to 32% for non-redlined neighborhoods.

These findings are consistent with national studies, which demonstrate how the legacies of residential segregation continue to impact people of color. This results in uneven access to public greenspace, less shade from trees, hotter temperatures, and poor air quality which can lead to more heat-related illness and asthma rates. Increased temperatures can place higher energy demands and financial burdens on people living in these areas, which will further strain health and household budgets as extreme heat becomes more common in the next few decades.

These implications underscore the need for comprehensive energy efficiency, clean energy, and urban planning strategies to mitigate adverse impacts. They also show that energy efficiency is an intersectional issue that must be advanced through collaborative efforts across sectors, including energy, public health, urban planning, and development.

Grace Parker

Source: Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act Dataset; Graph: SEEA

Following last month’s map that explored home purchase mortgage denial rates by race, this month’s map shows home improvement mortgage denial rates by race in five Southeast cities: Atlanta, Birmingham, Miami, Nashville, and Richmond. Like mortgage loans for home purchases, we found wide disparities between racial groups in their ability to access lending for home improvements. Using data collected by the U.S. Consumer Financial Protection Bureau to ensure compliance with the Home Mortgage Disclosure Act, we discovered that the denial rate for home improvement loans in each city is highest for Black and Hispanic applicants, followed by Asian applicants, with white applicants experiencing the lowest rates. In Birmingham, the denial rate for Black applicants is twice that of white applicants. 

In each of these cities, denial rates for home improvement mortgages are generally higher than those for home purchase mortgages. Home Mortgage Disclosure Act regulations consider home improvement loans as those that are “for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located.” This includes home improvement spending built into mortgages for home purchases or lines of credit opened for home improvement if the home itself is used as collateral on the loan. 

According to the U.S. Census Bureau’s American Housing Survey, about a third of home improvements in the Southeast are for energy efficiency measures. Limited access to capital for home improvement hinders the ability of homeowners, particularly Black, Hispanic, and Asian homeowners, to make energy efficiency upgrades. This further contributes to racial disparities in energy costs and burdens and makes it more difficult for people of color to access healthy, efficient and affordable housing. 

Grace Parker

hover over the map to click through the slideshow

Source: Dynamic National Loan-Level Dataset, U.S. Consumer Financial Protection Bureau; Maps: SEEA

Redlining and other forms of housing segregation officially ended in 1968 with the Fair Housing Act, but access to lending still differs depending on a person’s race. People of color are still more likely to be denied access to mortgage lending than white people. Homeownership is the most common pathway to building generational wealth in the United States and limiting access to capital for buying a home not only prevents people from healthy, safe, and affordable housing and inhibits social mobility. 

This month’s map tracks disparities in mortgage lending throughout the Southeast using data collected from federally- backed lenders as part of the Home Mortgage Disclosure Act (HMDA). It shows the mortgage denial rate by race among counties in the Southeast between 2018 and 2022. As housing costs and high- interest rates raised monthly mortgage payments, lenders denied around 12 percent of home purchase mortgage applications in the Southeast. However, the applicants are not denied evenly. Between 2018 and 2022, about 10 percent of non-Hispanic white applicants, 8 percent of Asian applicants, 14 percent of Hispanic applicants, and 21 percent of Black applicants in the Southeast were denied mortgage loans.  

In 2022, the most common reason for mortgage application denials was insufficient income. Income also varies by race. The median non-Hispanic, white household income in 2022 was $81,000; Asian household income was $109,000, Hispanic household income was $63,000, and Black household income was $53,000. Inequities in income, lending, and the ability to build wealth impact a household’s ability to access safe and healthy housing. A lack of mortgage capital also makes it difficult for people to access the benefits energy efficiency, whether through housing choice or home retrofits. Stay tuned for a forthcoming map on lending for home improvements, which will shed light on the ability of households to achieve energy efficiency savings through home improvement capital.  

William D. Bryan, Ph.D. & Joy Ward

We are excited to introduce a new addition to SEEA’s blog this year – the Map of the Month. Every month, our research team will share a map that explores energy efficiency in the Southeast.

Millions of people in the South who struggle to pay their electric and gas bills every month are threatened with energy insecurity, or when a household cannot maintain vital energy services like heating and cooling. Energy insecurity undermines the health, safety and affordability of housing. The COVID-19 pandemic has only exacerbated this crisis.

Using new state-level data from the Energy Information Administration’s 2020 Residential Energy Consumption Survey (RECS), this map shows that people living in the Southeast experience the highest rate of energy insecurity in the country. In Mississippi, where 2 out of 5 households struggle to keep on the lights and heat, people are more likely to be energy insecure than anywhere else in the U.S. Of the 9.3 million energy insecure homes in the Southeast, nearly one-third are in Florida and Georgia. People experiencing energy insecurity are at greater risk for respiratory illness, poverty, and being unable to survive or recover in the face of extreme weather.

Beginning with a report and StoryMap, published in 2021, our research team has led SEEA’s work in identifying the historical and current systemic issues that contribute to energy insecurity in the Southeast. In 2022, SEEA announced the Southeast Energy Insecurity Project and continues to advance energy efficiency as a mitigation tool to help people in the Southeast live in healthier, more comfortable homes. You can hear more about how to reduce energy insecurity in our upcoming webinar, Promoting Knowledge and Engagement – Addressing Energy Insecurity in the Gullah Community on Wednesday, Jan. 25 at 11 a.m. ET.