What is Redlining?
Have you ever wondered why large racial wealth gaps exist in the US today? If you have ever visited a major U.S. city, it’s hard to miss the stark disparity between neighborhoods. According to the Center for American Progress, the average black family in America owns just one-tenth of the wealth as an average white family.
These differences are real and are a result of deliberate policies that, for decades, blocked Black Americans from building wealth. Among the most devastating of these was redlining: a federally backed system that denied home loans, insurance, and public investment to neighborhoods based purely on race.
Redlining didn’t just draw lines on a map. It etched inequality into the landscape of America.
A Brief History of Redlining
Redlining was a discriminatory practice in which banks, insurers, and government agencies denied loans and services to residents based on where they lived. In the 1930s, a federal agency called the Home Owners’ Loan Corporation (HOLC) created color-coded maps that graded neighborhoods across hundreds of U.S. cities. The HOLC was responsible for assessing the risk of mortgage lending in cities across the country. Some areas were deemed “hazardous” and were shaded red (hence the name, redline). The truth, however, was that these areas were only deemed unsuitable because of the racial makeup of the residents. As a result of these designations, people living in these redline-neighborhoods (i.e. minorities), were often denied basic financial services by banks and insurers. This made it nearly impossible for families, especially Black families, to buy homes, build equity, or accumulate wealth.
Today, the effects still linger. These maps dictated which neighborhoods received public investment and which were left behind. Over time, the disinvestment snowballed leading to underfunded schools, poor infrastructure, lower home values, and fewer job opportunities in redlined communities. For most American families, homeownership has been the single greatest path to building wealth. But Black families were locked out of that opportunity at scale.
Redrawing the Lines Through Hospitality
Our name, The Redline Hotel Group, is a direct reference to redlining and its ongoing legacy. We’re creating authentic experiences in neighborhoods that were once historically redlined and disinvested in, now celebrated for their rich history, creativity and social impact.
Not only are we acknowledging our past, we’re actively investing in the future of these communities by creating economic opportunities and cultural platforms. Our priority is creating spaces where Black stories are centered, celebrated, and shared with the world.
We launched in Venice Beach by creating a boutique property that blends art, design, and community history. Through intentional partnerships with local artists and historians, we’ve transformed a place of past exclusion into destinations that invite connection, belonging, and celebration.
Now, we’re exploring other cities with deep histories and untapped hospitality potential. And we want to take our community on this journey. Stay in the loop to get updates on our progress, special announcements, and opportunities to get involved.
