“Unfortunately, it follows a pattern that we have seen in the past where certain neighborhoods in Boston, in a sense, get a much bigger piece of the pie,” said James Jennings, a professor emeritus at Tufts University and an expert on race, urban planning and economic development.
Buying a home can create financial security, ensure housing stability and leave wealth for future generations — which can have an impact on a family and on a community. And economic development experts say home lending can influence how neighborhoods are shaped and transformed.Many factors contribute to differences in mortgage lending, including turnover in the housing market, construction of new housing, property values and long-standing economic disparities.
Along Broadway Street, which cuts through the center of South Boston, there are juice bars, trendy restaurants and niche retail shops to pamper pets, plants and people. There are also construction sites and shiny new buildings. Jennings would like to see the same kind of injection of money and new development South Boston has received in other neighborhoods, where most people of color live. He said this would give those residents more opportunities to enjoy the benefits of homeownership.
“Home lending is associated with other lending to a very high degree,” Theodos said, such as for small businesses and commercial developments like grocery stores.In Boston, homes are expensive and in short supply. The highly competitive market makes it even more challenging for historically disadvantaged groups to buy homes. For some Black residents, that has meant leaving the city to make their dream of owning a home come true.
Amid these trends, some Black homebuyers are concerned about gentrification. Like Jha D. Amazi, who is determined to find a multifamily house in Dorchester, Roxbury, Mattapan or Hyde Park. Citywide, when looking at loans given to majority-white and majority-Black areas, white areas received nearly five times more loans than Black areas.
Connecticut-based People’s United made 27 times more loans in majority-white areas than majority-Black areas – the largest disparity of any bank. It did not open its first Boston location until late 2018, although federal data shows the bank did make loans in the city before that time.
Systematic
The fact that there are still black areas and white areas shows what an utter failure Boston is. Will anything happen to these racist lenders? Nothing.