We recently compiled a report of the 25 Most Segregated Cities in the US, and in this article, we will take a look at the most segregated city.
A Brief Account on Segregation in America
America has long been subject to the restriction of people to specific spaces based on their race, a phenomenon also known as racial segregation. The nation holds a long history of witnessing African Americans being separated from the Whites up to the extent that Black units were separated from White units in the Armed Forces. In the domain of education, schools were segregated with limited opportunities for Black students. Racial residential segregation further resulted in sore outcomes for people of color.
Racial residential segregation has been quite profound in the US under which people of color are denied opportunities for housing. An analysis of this segregation in the country revealed that 81% of the metropolitan regions with over 200,000 residents were more segregated in 2019 as compared to 1990. Segregated communities of color had the highest neighborhood poverty rates surpassing the poverty in segregated white neighborhoods by three folds. Black children also earned higher incomes when raised in white neighborhoods.
As reported by NPR, residential segregation began in America in 1933 when the federal government facilitated White families with housing, leaving behind people of color with restricted choices. The Federal Housing Administration aggravated the situation by not insuring mortgages in African-American neighborhoods or nearby. The practice of redlining was used to color those neighborhoods red where African Americans lived to depict that such areas were risky for insuring mortgages. Thus, many of the US areas still remain segregated after between the Whites and the Blacks after all these years.
How is the Homebuilding Industry Facilitating Americans Now?
While the effects of the prior segregation-inducing housing policies persist across America, the homebuilding industry has come forward with ample opportunities for buyers to find their best fit in the locations they wish to settle in. Lennar Corporation (NYSE:LEN) is a leading American home builder that constructs affordable, move-up, and active adult homes. It also engages in the development of high-quality multifamily rental properties in the country. The company evolved from being a local Miami homebuilder in 1954 to becoming one of America’s largest homebuilders. Its operations span 26 states across the US including some of the most segregated cities such as Houston, Dallas, Chicago, Atlanta, Austin, and Miami. In a nation where the homeownership rate for Black Americans was 44% in 2021 while it was as high as 72.7% for White Americans, Lennar Corporation (NYSE:LEN) has made homeownership and mortgage access easy for those who find it inaccessible. The firm’s single-family rental business fosters social equity and upward mobility by providing single-family living to a diverse range of Americans even if they cannot yet own. Lennar Corporation (NYSE:LEN) was successful in being recognized among the top 5% of mortgage lenders in social impact and racial equity by the National Association of Minority Mortgage Bankers of America (NAMMBA) in 2023. Furthermore, the Lennar Foundation serves underserved communities in the US by aiming to enhance their quality of life. The Lennar Foundation has funded Florida Memorial University’s Certificate Program in Construction Trades which is the first of its kind in a historically black college.
The latest interest rate decision given by the Fed aligns with the company’s strategy. Officials have signaled just one rate cut which is expected in September based on Wall Street’s best bet, given that inflation continues to fall in the next few months. Lennar Corporation (NYSE:LEN) is in a good position to cater to the pent-up demand as soon as interest rates fall.
During the earnings call, Executive Chairman Stuart Miller referred to the macro environment as relatively constructive for American homebuilders. While the nation’s housing demand remains strong and the supply remains seriously low, the company is catering to working-class families by focusing on community-scale, build-to-rent, and single-family for-rent homes. Multiple markets continue to be strong including most of Florida, Atlanta, the Carolinas, and Texas based on an underlying demand. This proves that the housing demand is enough for the company to strive for profit through residential construction which is also the homebuilding mission of the firm. However, high interest rates and affordability continue to be major concerns among buyers right now. For this purpose, the homebuilder is engaging in the construction of attainable homes for primary purchasers. During the second quarter of 2024, Lennar (NYSE:LEN) started approximately 21,400 homes while it sold 21,300 homes, in line with its overall target for 2024.
Pixabay/Public Domain
Our Methodology:
In order to compile a list of the 20 most segregated cities in the US, we did a sentiment analysis on Reddit. First, we aggregated the list of the most segregated US cities by sifting through 5 online rankings. Next, we used Reddit to find 15 threads that asked people about the most segregated cities. We read and analyzed all the comments and added the upvotes for each city on our list. Lastly, we shortlisted cities that had at least a total of 150 upvotes and ranked the cities on our list in ascending order of the total upvotes on Reddit.
Note: This list is not exhaustive and does not reflect our opinion. The ranking is solely based on the opinions of Reddit users.
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The Most Segregated City in the US
1. Milwaukee
Upvotes: 441
Milwaukee ranks at the top of the 25 most segregated cities in the US and is a part of the state of Wisconsin. The most notable segregation in the city exists along the lines of race. An analysis of segregation in Milwaukee revealed that its most diverse neighborhoods are positioned on the south, west, and northwest sides. On the contrary, the least diverse neighborhoods are on the north side which is highly segregated and hosts predominantly Black residents. The dilemma concerning the city is that things have not improved over the years although racial integration has been increasing in some suburbs in the city’s southwest and northwest. Housing conditions on the north side are worse off. This has resulted in lower mean family incomes for Black and Hispanic city residents. Racial violence has also been exercised against the Black residents who think of the city as prejudiced and have low hopes of getting adequate justice. Poverty is also more concentrated among this group while unemployment rates remain high. The city’s current segregated state has been largely a product of the historical practice of redlining.
To explore other segregated American cities, you can view our free report on the 25 Most Segregated Cities in the US.
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