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In modern times, many people don’t consider how real estate began in America. History tells us that land was taken from Native Americans by force and war. Many buildings, including some of the most iconic in the U.S., were built with slave labor.
America was founded on the principles of freedom, but also the suppression of minorities. This profound contradiction remains unresolved centuries later in a country that is deeply divided over the topic of diversity and equality.
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Science tells us we are all one human race despite skin-deep differences in appearance. Genetically, all humans are nearly identical, with equal intellectual and emotional capacities. Our lives should be valued equally. Yet, opportunities in life are unequal.
The bigotry and apathy in our country’s founding persist as systemic racism today. The need for fair housing and equality remains as strong as ever.
Historical racism in real estate
United is our country’s namesake, but we are incredibly divided. Racism nearly destroyed America during the Civil War, and many would argue it is still eroding our country today.
Even after slavery was abolished in 1865 through a constitutional amendment, Black Americans were systematically oppressed. In 1926, the U.S. Supreme Court upheld racially restrictive covenants in property deeds, prohibiting sales or occupancy based on race, ethnicity or religion.
The court justified this as protecting “residential districts against deterioration of character.” This ruling stood until the Fair Housing Act of 1968.
Established in 1934, the Federal Housing Administration (FHA) institutionalized redlining, a practice that designated minority neighborhoods as high risk for mortgage lending. The FHA’s Underwriting Manual explicitly recommended the “prohibition of the occupancy of properties except by the race for which they are intended.”
This led to the systematic denial of mortgages to Black Americans and other minorities, severely restricting their ability to purchase homes and build wealth. It also ensured neighborhood segregation for generations.
Even the National Association of Realtors (NAR) played a significant role in enforcing discriminatory housing practices. In 1924, NAR’s Code of Ethics stated that Realtors “should never be instrumental in introducing into a neighborhood … members of any race or nationality, or any individuals whose presence will clearly be detrimental to property values.” This clause remained until 1974.
Furthermore, NAR actively opposed the Fair Housing Act in 1968. NAR formally apologized less than five years ago, in November 2020. The apology came decades late and in the wrong century, evidence of how slowly progress is being made toward equality.
Current bigotry in real estate
The Fair Housing Act of 1968 was a landmark federal law prohibiting discrimination in housing based on race, color, religion, sex, national origin, disability and familial status. The laws changed, but it did not change people’s hearts.
The baby boomers who control U.S. politics today grew up in a segregated world and were taught discrimination by their parents and society. Fair housing matters, but it only works when people embrace it.
Minorities experience more housing discrimination and lower homeownership rates. It’s evidence that the legal protections aren’t working as intended — because many people are still racist and the United States was built for white men.
Today, politicians avoid openly discriminating against protected classes like race, as doing so would be political suicide. Instead, they target other groups with fewer legal protections.
The LGBTQ+ community, for example, is a frequent target. The hatred directed at LGBTQ+ individuals in politics today mirrors the historical hatred toward racial minorities. Currently, there are no federal laws protecting against discrimination based on sexual orientation or gender identity, and only 23 states have passed legal protections for both.
Hateful politicians are strategic about whom they hate publicly versus privately. Beware of any hateful politician if you aren’t in the majority — they might secretly hate you, too.
Politicians also use coded language to alienate minority groups. Diversity, Equity and Inclusion (DEI) programs have been a cornerstone of housing initiatives to help minorities overcome generational disadvantages caused by systemic racism. These programs are crucial to correcting the injustices baked into past and present legislation.
Anti-DEI ideology presumes that the system is not rigged for the majority and that minorities should not have any advantages — which is completely untrue. Even with DEI programs, minorities are still underserved and disadvantaged. Anti-DEI rhetoric is outright racism and an attempt to maintain power over minorities.
Government agencies have focused heavily on DEI programs for years. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) have all allocated significant budgets toward eliminating housing discrimination and promoting minority homeownership.
Under the Biden-Harris Administration, Black and Latino homeownership rates increased by 13 percent and 7.5 percent, respectively, from 2019 to 2023, narrowing the homeownership gap. Now, HUD faces the challenge of cutting essential staff members and eliminating their positions because of the Department of Government Efficiency, aka DOGE. The Trump administration proposed significant staffing cuts to HUD, targeting employees involved in disaster recovery, rental subsidies, discrimination investigations and support for first-time homebuyers.
This proposal aimed to halve HUD’s workforce, eliminating 4,000 jobs and affecting more than a dozen programs, raising concerns among housing advocates about disruptions to HUD’s critical functions. It’s estimated that 77 percent of staff will be laid off at the Office of Fair Housing and Equal Opportunity, which enforces the Fair Housing Act at the federal level.
Housing is only one component in the fight for equality. There are many other frontlines where minorities are being actively disadvantaged. Systemic discrimination persists in various forms, including school districting, gentrification, political gerrymandering, harsher criminal sentences and employment discrimination.
This doesn’t account for the fact that some people vocally harass minorities for no reason. While Black Americans often bear the brunt of bigotry, other groups also face targeted discrimination based on current events.
Today, transgender people are villainized; during the COVID-19 pandemic, it was Asians; after the Sept. 11 attacks, it was anyone of Middle Eastern descent. Hateful people will always find someone to hate. If you turn on the news, it’s apparent how much hate exists in America.
The harsh reality
From its origins to modern times, bigotry has been ingrained in political discourse and American culture. If you don’t see the problem, it may be because you benefit from privilege, most likely as a white, heterosexual individual.
As we move into the future, it would be assumed that civic rights would prosper. Unfortunately, they are deteriorating.
The United States was recently put on a watchlist for declining civil liberties, alongside countries like the Democratic Republic of Congo, Pakistan and Serbia.
The problem of systemic racism in America is more significant than any of us individually, but with education and personal action, we can still take a personal stance against it.
- We can wholeheartedly embrace minorities on their real estate journey.
- We can vote to protect their interests.
- We can promise not to judge anyone for being different from us.
- We can embrace diversity because it offers more in life than if everyone were the same.
Let’s face the facts: Love feels better than hate. It’s time to embrace compassion because it’s better for us and others.
America would not exist without the theft of land and the exploitation of minorities. The least we can do is show empathy toward those who have been disadvantaged for generations.
The last thing we should allow is to stand by and watch our government suppress, deny and oppress minority groups further.
This is not a political opinion but a call for love and justice. If Americans genuinely believe that “all men people are created equal,” we must actively accept and support each other to make it a reality.
Sean Frank is the founder and CEO of Mainframe Real Estate in Florida. Connect with him on Instagram and LinkedIn.
