What does redlining refer to?

Redlining refers specifically to the practice of refusing mortgage financing based on the geographic location of a property or the demographics of its residents. This term originated from the practice where lenders would outline areas in red ink on maps to indicate neighborhoods considered too risky for mortgage investment, which disproportionately affected minority communities and those in lower-income areas. This discriminatory practice has significant historical implications, contributing to systemic inequality and segregation in housing.

In contrast, assessing property value pertains to financial evaluations based on various metrics, zoning neighborhoods involves city planning and regulations for land use, and urban renewal focuses on the revitalization of urban areas. While all these concepts are related to real estate and community development, they do not capture the essence of redlining, which is directly tied to discriminatory lending practices. Understanding redlining is crucial to comprehending ongoing discussions about fair housing and the legacy of racial discrimination in the United States.