• Print
  • Email

Working Papers, No. 2023-02, January 2023 Crossref
Blockbusting and the Challenges Faced by Black Families in Building Wealth through Housing in the Postwar United States

(Revised August 2023)

We study the impacts of blockbusting, i.e. large-scale racial turnover of urban neighborhoods orchestrated by realty professionals using aggressive and discriminatory practices. In large U.S. cities, we compare neighborhoods subjected to blockbusting to other similar neighborhoods mostly in the 1950s-1960s. We find that blockbusting caused substantially lower house values in 1980 and 1990. To understand the mechanisms, we analyze property-level data in one neighborhood of Baltimore, Maryland. We find that new residents that purchased their properties through blockbusters were charged higher prices and had higher foreclosure rates than new residents that purchased directly from existing property owners..

Working papers are not edited, and all opinions and errors are the responsibility of the author(s). The views expressed do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.


Register to receive email alerts when new issues are published.

Subscription Signup

Your request has been submitted. Please tell us more about yourself.

Subscription More Info
Having trouble accessing something on this page? Please send us an email and we will get back to you as quickly as we can.

Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2024. All rights reserved.

Please review our Privacy Policy | Legal Notices