NPR: A ‘Forgotten History’ Of How The U.S. Government Segregated America
African-American families that were prohibited from buying homes in the suburbs in the 1940s and ’50s and even into the ’60s, by the Federal Housing Administration, gained none of the equity appreciation that whites gained. So … the Daly City development south of San Francisco or Levittown or any of the others in between across the country, those homes in the late 1940s and 1950s sold for about twice national median income. They were affordable to working-class families with an FHA or VA mortgage. African-Americans were equally able to afford those homes as whites but were prohibited from buying them. Today those homes sell for $300,000 [or] $400,000 at the minimum, six, eight times national median income. …
So in 1968 we passed the Fair Housing Act that said, in effect, “OK, African-Americans, you’re now free to buy homes in Daly City or Levittown” … but it’s an empty promise because those homes are no longer affordable to the families that could’ve afforded them when whites were buying into those suburbs and gaining the equity and the wealth that followed from that.
The white families sent their children to college with their home equities; they were able to take care of their parents in old age and not depend on their children. They’re able to bequeath wealth to their children. None of those advantages accrued to African-Americans, who for the most part were prohibited from buying homes in those suburbs.