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What is Redlining?

The redlining practice got its name because of the actual red lines that were drawn on maps by bank lenders, insurers, and government agencies to identify and differentiate neighborhoods during city planning. Redlined neighborhoods are areas where housing prices are manipulated, lenders refuse to offer loans to residents, or sometimes make loans on unfavorable terms in what’s called "predatory lending".

People of color are often targets of redlining. This discriminatory practice creates devastating cycles of poverty that can last within families for generations, and are difficult to escape.

Redlining in Philadelphia

Though federal law made redlining illegal in 1968, similar practices still exist today and have tremendous impact in Philadelphia.

Today, almost a third of the city’s residents – including approximately 135,000 children – live under the federal poverty line, which for a family of four, means finding ways to stretch just $24,000 in annual household income.

Living in areas with lower wages and fewer job opportunities overall, those who live in poverty often live in areas with higher crime rates and have poorer health outcomes. In many ways, where people live determines their quality of life, especially when it comes to education, employment and well-being.