Segregation and the Public Works Administration
The Public Works Administration’s efforts to build housing for people displaced during the Great Depression focused on homes for white families in white communities. Only a small portion of houses was built for Black families, and those were limited to segregated Black communities.
In some cities, previously integrated communities were torn down by the PWA and replaced by segregated projects. The reason given for the policy was that Black families would bring down property values.
Red-Lining
Starting in the 1930s, the Federal Home Loan Bank Board and the Home Owners' Loan Corporation conspired to create maps with marked areas considered bad risks for mortgages in a practice known as “red-lining.” The areas marked in red as “hazardous” typically outlined Black neighborhoods. This kind of mapping concentrated poverty as (mostly Black) residents in red-lined neighborhoods had no access or only very expensive access to loans.
The practice did not begin to end until the 1970s. Then, in 2008, a system of “reverse red-lining,” which extended credit on unfair terms with subprime loans, created a higher rate of foreclosure in Black neighborhoods during the housing crisis.
Housing Segregation
In 1948, the Supreme Court ruled that a Black family had the right to move into their newly-purchased home in a quiet neighborhood in St. Louis, despite a covenant dating back to 1911 that precluded the use of the property in the area by “any person not of the Caucasian race.” In Shelley v. Kramer, attorneys from the National Association for the Advancement of Colored People (NAACP), led by Thurgood Marshall, argued that allowing such white-only real estate covenants were not only morally wrong, but strategically misguided in a time when the country was trying to promote a unified, anti-Soviet agenda under President Harry Truman. Civil rights activists saw the landmark case as an example of how to start to undo trappings of segregation at the federal level.
But while the Supreme Court ruled that white-only covenants were not enforceable, the real estate playing field was hardly leveled. The Housing Act of 1949 was proposed by Truman to solve a housing shortage caused by soldiers returned from World War II. The act subsidized housing for whites only, even stipulating that Black families could not purchase the houses even on resale. The program effectively resulted in the government funding white flight from cities.
One of the most notorious of the white-only communities created by the Housing Act was Levittown, New York, built in 1949 and followed by other Levittowns in different locations.
Segregation in Schools
Segregation of children in public schools was struck down by the Supreme Court as unconstitutional in 1954 with Brown v. Board of Education. The case was originally filed in Topeka, Kansas after seven-year-old Linda Brown was rejected from the all-white schools there.
A follow-up opinion handed decision-making to local courts, which allowed some districts to defy school desegregation. This led to a showdown in Little Rock, Arkansas, in 1957, when President Dwight D. Eisenhower deployed federal troops to ensure nine Black students entered high school after Arkansas Governor Orval Faubus had called in the National Guard to block them.