Redlining In Society
Because white people made up a significantly larger percentage of the population than blacks or hispanics do, they had a greater effect on housing demand. When white people wanted to live somewhere, the property value increased. Therefore, it was more beneficial for companies to invest in areas wanted by whites (“Interview with Dalton Conley”).
Many different parties have roles to play in the lending process: potential homeowners; real estate agents; developers, speculators, and potential landlords; lending companies; and the government. Each of these groups could unintentionally or purposely be the source of redlining.
The attributes of potential homeowners- age, income, race, etc.- affect what sort of home they seek. They favor better quality neighborhoods, and are more likely to purchase a worse home in a better area than a better home in a less desirable place (Kantor and Nystuen,