This video is a Part II of a compilation of videos interviewing author Antero Pietila on his novel, “Not in My Neighborhood.” He speaks on the process of blockbusting that surrounded and devastated the area of Baltimore, Maryland. He spoke on how speculators would propagate the racism that surrounded the area during the period of the 1940 and 1950’s.
These speculators would warn one white family that he hears there are African Americans entering their neighborhood, and that they must move. He would offer them a price, saying that he cannot guarantee them this same price the next day, as he claimed the influx of African Americans in the neighborhood will decrease their property value.The white families, in dismay, would quickly feed into the speculators and sell their houses. The speculators would then sell the house to African American families for double to triple the amount he had bought it for. He entices them with the option of a rent to buy contract with a high interest rate. Being a homeowner is generally associated with having wealth, which Tom Angotti mentions in his novel, “The Real Estate Capital of the World” that this is not always the case for residents such as those living on the Upper East Side of Manhattan. After one African American family moved in, speculators would begin sending leaflets to families in the neighborhood claiming there were instances of rape occurring in the area with the influx of African American families. People would immediately become frightened for the safety of their families, and leave the area – selling the house for a terribly low price to the realtors. This method that speculators used was not technically against the law at the time period, making it difficult to argue against. On top of this, the African American families would have to borrow more money from speculators in order to create regulating items in their houses, such as clean bathrooms, as many neighborhoods in Baltimore were of deplorable house shapes. Over time, the real estate speculators acquired a vast sum for themselves. However, by implementing the high interest rates to the new African American families and causing them to be depleted of money with all the stipulations given to them, these neighborhoods became increasingly poor-sighted, and led to great poverty and a vast amount of these houses becoming boarded up. This remains a problem till this day, where urban planning is attempting to reverse the effects.
The concept of blockbusting is mentioned in Angotti’s novel as well. He mentions that the concept of blockbusting happens for speculators who want to redevelop the area mainly for their own wealth benefit. He speaks on how this process happens in many outer borough areas. He mentions that these areas are becoming increasingly diversified in ethnicity, yet still remaining segregated due to the speculators. This is the complete opposite of racial steering, where African Americans are steered away from neighborhoods that are majority resides by white families. It is important to notice here how real estate can affect and propagate the racial stigma that continues in our city. The concept of blockbusting has been featured around many areas of the country, and is hard to get around due to no way to pinpoint exactly how the procedure is illegal. This is important to notice how the racial discourse that has shaped the neighborhoods we live in today play a role in the effects that racially discriminated groups have. Due to their inability to pay off many of the interest rates that speculators have forced them to buy, the neighborhoods become increasingly deplorable. There becomes a higher crime rate, drug selling, and the public schools around the area become weak, and undesirable as a workplace for many. This is a clear example on how the racial factors that play into real estate affect the institutional and structural layers of a neighborhood, and the racial group that is associated with the turmoil. Much of the sales and rental of property in varying neighborhoods across the country and in New York City are color-coded and internally racialized. It is important that we realize much of what has become of low income neighborhoods, and inacceptable housing can trace back to the institutionalized racism that trails to our history.
Video source can be found (x). Link to Pietila’s novel can be found (x).
