The Lasting Impacts of Redlining on Seattle Today
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The History of Racism and Redlining in Seattle Real Estate: Progress and Challenges
Seattle, like many U.S. cities, has a complicated history with race and housing. Redlining practices implemented during the 20th century left lasting impacts on Seattle's neighborhoods, creating racial and economic divides that have influenced generations. Although much has been done to address these inequalities, challenges remain as the city works toward building a more inclusive future. Here’s a look at the history of racism in Seattle’s real estate market, the effects of redlining, and what’s being done to bridge the generational wealth gap caused by discriminatory policies.
The Roots of Redlining in Seattle
In the 1930s, redlining became a federal practice under the Home Owners' Loan Corporation (HOLC), which assessed neighborhoods across the U.S. to determine mortgage eligibility. These assessments created “security maps” that rated neighborhoods on a scale from A to D, with D-rated areas marked in red. Areas labeled as “redlined” were deemed risky investments due to their racial or ethnic makeup, and banks were less likely (read “not likely at all”) to approve loans there.
In Seattle, neighborhoods with higher populations of African Americans, Asian Americans, and Jewish families were redlined, making it almost impossible for residents in these areas to secure home loans or home owners insurance. Redlining cemented racial and economic divides by restricting where non-white residents could live, often confining them to lower-income neighborhoods and denying them access to homeownership opportunities in “desirable” areas.
Restrictive Covenants and Housing Discrimination
Alongside redlining, restrictive covenants were commonly included in Seattle’s housing deeds and neighborhood association rules. These covenants explicitly barred people of color and certain ethnic or religious groups from buying or renting homes in particular neighborhoods or complexes. Many of Seattle's neighborhoods, including Queen Anne, Laurelhurst, and Broadmoor, enforced restrictive covenants that effectively excluded African Americans, Asian Americans, and Jewish families.
Though the Fair Housing Act of 1968 made housing discrimination illegal, the legacy of restrictive covenants and redlining still affects Seattle’s neighborhoods. Notice that prices to the north are significantly higher than to the south.
It is now mandatory to scrub any such covenants from deeds before a property can be transferred to a new owner. Some view this as a good thing, others wish the line items would be struck through but still visible to remember our history in an effort to prevent it from repeating.
The Legacy of Redlining and the Generational Wealth Gap
One of the most profound impacts of redlining and housing discrimination is the generational wealth gap. For many American families, homeownership has been key to building and passing wealth to offspring. However, due to decades of exclusion from Seattle’s housing market, many BIPOC families were unable to build this foundation of wealth. On average property value doubles every 10-15 years in the Greater Seattle area.
In Seattle today, the median home value has skyrocketed, making it even harder for first-time homebuyers—especially those from marginalized communities—to enter the housing market if they (or their families) do not already have substantial equity. The generational wealth gap between white residents and BIPOC residents remains significant, partly because the opportunities to own property and benefit from its appreciation were historically denied.
Sadly, the impacts spread much further than the housing market. In Washington State school districts are still being impacted today as schools are partially funded by local property tax. In areas where house prices are lower, districts receive fewer funds. For example, between 2013-2016 even within King County the average expense per pupil still aligns with redlining tactics. Areas known to be wealthier, such as Bellevue ($21,689.11/pupil), Mercer Island ($19,693.70/pupil) receive drastically more funding than Rainier Prep Charter ($11,538.86/pupil) and Muckleshoot Tribal School ($7,551.46/pupil). Voters have had the opportunity to evenly distribute funds across the state, rather than funding only their local district, but the vote did not pass.
Efforts to Remedy the Harm: Closing the Wealth Gap
Seattle has taken several steps over the years to acknowledge the harm caused by redlining and to help address the racial wealth gap. Here are a few key efforts:
Affordable Housing Initiatives: The city of Seattle has implemented various programs to encourage affordable housing development and improve access to housing for communities of color. The Affordable Housing Levy, passed in 2016, provides funding for low-income housing projects, and the Housing Choice Voucher Program helps low-income families access rental homes.
Land Trusts and Community Development: Organizations like the Homestead Community Land Trust and the Housing Development Consortium of Seattle/King County work to provide affordable homeownership opportunities for people who have historically been excluded from homeownership. By creating land trusts and focusing on community-led development, these organizations aim to preserve affordable housing and help residents build wealth over time.
Reparations and Direct Support: While reparations for the harms caused by redlining remain a topic of national discussion, some cities, including Seattle, have begun initiatives aimed at reparative justice. One example is the Reparations Fund established in the Central District, which supports community-driven efforts to close the wealth gap and restore economic opportunity.
Educational and Financial Support: Seattle’s Office of Housing, along with various nonprofit organizations, offers programs designed to support first-time homebuyers, especially those from historically marginalized communities. These programs often include financial literacy workshops, down payment assistance, and access to affordable mortgages through specialty loan programs, helping to create opportunities for homeownership that were historically out of reach.
Zoning Changes: Over the years, zoning laws that limited where people of color could live have been changed. The city of Seattle has made efforts to reduce exclusionary zoning and increase access to housing in previously restricted areas. Policies like the Mandatory Housing Affordability (MHA) program aim to create more affordable housing options in areas where higher-income residents previously dominated.
A Long Road Ahead
Despite these efforts, much work remains to be done to fully address the lasting effects of redlining and racism in Seattle’s real estate market. Many communities of color are still fighting for equitable access to homeownership, and the wealth gap continues to be a significant challenge.
It’s clear that while the city has made strides in addressing some of the inequities created by redlining, the history of racism in Seattle real estate is one that requires continuous attention. Only through sustained efforts that include policy changes, financial support, and community engagement can Seattle work towards a more equitable housing market for all residents.
Conclusion
The legacy of redlining and racial discrimination in Seattle’s housing market continues to affect the city’s communities of color. From the creation of redlined districts to the ongoing struggles of families to build wealth through homeownership, these practices have left a lasting mark on the city. However, with initiatives aimed at providing affordable housing, community development, and reparative justice, Seattle is taking steps toward closing the wealth gap and creating a more inclusive community. While there is still much work to be done, these efforts represent important progress toward addressing the harms of the past.
