Week 6: Housing Segregation

Question 1

Index of dissimilarity (or segregation index)

Answer 1

• measuring of segregation between two groups
• percentage of the population of one group who would need to move to a different area to eliminate segregation
• usually measured at the census tract level
• ranges from 0-100: the higher the index the higher the level of segregatin

Question 2

44% of the population in OC are Non-Hispanic Whites and 34% are Hispanics. What percentage of Non-Hispanic Whites and Hispanics would you expect to find in each census tract within OC for the county to have no segregation?

A) 50% NH-Whites, 50% Hispanics
B) 44% NH-Whites, 34% Hispanics

Answer 2

B) 44% NH-Whites, 34% Hispanics

Question 3

Which of the following cities has the highest level of Black-White segregation?

A) Chicago: 75.9
B) Detroit: 79.6
C) New York: 79.1
D) Los Angeles, 65

Answer 3

B) Detroit 79.6

Question 4

Segregation of Blacks-Whites

Answer 4

• segregation declined since 1960
• metropolitan areas with higher Black population have higher levels of segregation
• Northern and old industrial cities have the highest levels of segregation; lowest levels in the West

Question 5

Explanations for continuing segregation:

Economic Reasons

Answer 5

Blacks cannot afford to live in neighborhoods where Whites live.

• explain only a small part
• if income differences were the only reason for segregation, St. Louis should have an index of 10.8, its index is 73
• Blacks and Whites of similar incomes are more segregated than Whites of different incomes

Question 6

Explanations for continuing segregation:

Black Preferences

Answer 6

Blacks prefer to live in all-black neighborhoods.

• only explains a small part
• majority of Blacks prefer 50% or 75% black

Question 7

Explanations for continuing segregation:

White Preferences

Answer 7

Whites prefer to live in all-white neighborhoods.

• studies provide significant support
• majority of Whites would not move to neighborhoods that are 30% Black and would move out if their neighborhood reached this tipping point (white flight: rapid racial turnover)
• for Whites, integration means 20% Blacks
• most Whites live in neighborhoods that are less 5% Black

Question 8

Explanations for continuing segregation:

Real Estate Practices: Institutional discrimination

Answer 8

Racial Steering: selective showing of houses to Blacks and Whites and difference in treatment

• illegal since 1969, but still occurs
• ways to combat: 1988 Fair Housing Act Amendments, nonprofit organizations, affirmative market ordinances

Blockbusting: realtors profit from discrimination

• illegal since 1968, but still occurs
• promotes rapid racial turnover

Question 9

Explanations for continuing segregation:

Discrimination in Home Finance and Insurance

Answer 9

Redling: denial of loans in minority areas

• illegal since 1968, but still occurs
• prevents housing integration

Current lending discrimination

• offices located most in White areas
• more information/coaching given to Whites
• White applicants more likely to be approved
• minorities receive less favorable terms

Subprime loans: made to “riskier” lenders

• higher interest rates, less favorable terms
• issued to many minority lenders
• predatory loans: higher risk of default