What does the term "Redlining" refer to in a historical context?

The term "Redlining" specifically refers to discriminatory practices in housing and lending that systematically disadvantaged African Americans and other marginalized groups. Historically, it describes the practice where banks and insurance companies would outline areas on maps in red ink to indicate neighborhoods deemed too risky for investment, primarily because they were home to a significant number of Black families and other minorities. This practice prevented these communities from receiving loans, mortgages, and insurance, thus perpetuating residential segregation and economic disadvantage.

Understanding this term in its historical context highlights the broad ramifications of such policies, which included limited access to homeownership, the preservation of segregated neighborhoods, and the long-term cycle of poverty and lack of investment in these communities. The reality of redlining illustrates systemic racism embedded within housing policies in the United States during the 20th century, especially prominent during the 1930s through the 1960s and its lingering effects today.