The Effects of the 1930s Holc 'Redlining' Maps

100 Pages Posted: 16 Sep 2020

See all articles by Daniel Aaronson

Daniel Aaronson

Federal Reserve Bank of Chicago

Daniel A. Hartley

Federal Reserve Bank of Chicago

Bhashkar Mazumder

Federal Reserve Bank of Chicago

Date Written: August 2020

Abstract

We study the effects of the 1930s-era HOLC “redlining” maps on the long-run trajectories of neighborhoods. Using a boundary design and propensity score methods, we find that the maps led to reduced home ownership rates, house values, and rents and increased racial segregation in later decades. We also compare cities on either side of a population cutoff that determined whether maps were drawn and find broadly similar results. We conclude that the HOLC maps had meaningful and lasting effects on the development of urban neighborhoods through reduced credit access and subsequent disinvestment.

Keywords: Home ownership, housing, mortgage loans, redlining

JEL Classification: H81, O18, R21, R31

Suggested Citation

Aaronson, Daniel and Hartley, Daniel A. and Mazumder, Bhashkar, The Effects of the 1930s Holc 'Redlining' Maps (August 2020). FRB of Chicago Working Paper No. WP-2017-12, Available at SSRN: https://ssrn.com/abstract=3038733

Daniel Aaronson (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604-1413
United States

Daniel A. Hartley

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

HOME PAGE: http://www.danielaaronhartley.com

Bhashkar Mazumder

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

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