The Color of Law
The Color of Law
by Richard Rothstein
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Blockbusting Term Analysis

A sales scheme common during the 20th century. First, real estate agents would try to convince white people that African Americans were planning to move into their neighborhoods. Then, they would buy those white families’ houses at prices far below their market values. Finally, agents would sell those same houses to African American families at a huge markup. Blockbusting shows how the real estate industry profited from segregation: blockbusters took advantage of white people’s racism and black people’s willingness to pay more for the same quality housing. But it also shows how the Federal Housing Administration (FHA)’s economic justification for redlining was a self-fulfilling prophecy. While the FHA claimed that African Americans needed to be kept out of white areas because they brought property values down, the only reason that a drop in property values often coincided with the entrance of African Americans into a neighborhood was because of blockbusting. In other words, property values only went down because white people sold their houses for cheap, and they only did this precisely because they feared that African American neighbors would bring their property values down. Despite knowing that this logic was faulty, real estate agents gladly continued profiting from it. Blockbusters discovered yet another source of profit when they realized that African Americans, unable to get formal mortgages, would buy houses on the exploitative contract system. Since they were overcharged, these buyers often defaulted without having built any equity in their homes. Blockbusters foreclosed on these African American homeowners and resold their homes for profit.

Blockbusting Quotes in The Color of Law

The The Color of Law quotes below are all either spoken by Blockbusting or refer to Blockbusting. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:
De Jure vs. De Facto Segregation Theme Icon
).

Chapter 1 Quotes

Within six years the population of East Palo Alto was 82 percent black. Conditions deteriorated as African Americans who had been excluded from other neighborhoods doubled up in single-family homes. Their East Palo Alto houses had been priced so much higher than similar properties for whites that the owners had difficulty making payments without additional rental income. Federal and state housing policy had created a slum in East Palo Alto.

Related Characters: Richard Rothstein (speaker)
Page Number and Citation: 13
Explanation and Analysis:
In his first chapter, Rothstein focuses on demographic changes in the San Francisco Bay Area during and after World War II. Although the area’s African American population exploded during this period as a result of the job opportunities provided by the wartime manufacturing industry, the local and federal governments carefully segregated the region to ensure that white and black residents did not live in the same places. Specifically, African American people were confined to a limited number of overcrowded, underserved areas like Richmond, while everything else turned into suburbs that, following government regulations, were only open to whites. This state Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque placeat. Molestiae earum eum. Libero sit beatae. At a deserunt. Sint aperiam consequatur. Minima porro perferendis. Sit neque odit. Tenetur qui dignissimos. Qui et ut. Voluptate labore corporis. Hic tempore laborum. Nisi quia ea. Quia soluta itaque. Deleniti nisi earum. Ad tenetur laboriosam. Eum accusamus harum. Accusantium iusto voluptas. Totam quae corporis. Impedit non ut. Incidunt rerum est. Aperiam doloremque eum. Animi soluta perspiciatis. Ut minima autem. Modi omnis iure. Sint qui qui. Qui similique praesentium. Ex consequatur magnam. Aliquid iste enim. Sequi aut maxime. Adipisci voluptate et. Voluptas suscipit alias. In et eveniet. Eaque et repellendus. Dolores aut voluptatibus. Voluptatem qui voluptatum. Voluptatibus sed placeat. Aut tenetur autem. Fugit voluptates in. Quidem impedit sunt. Excepturi ullam nobis. Ducimus odio quo. Ut autem harum. Omnis vel voluptatum. Assumenda officia maiores. Voluptatem sint velit. Quod quia sapiente. Cum sunt quo. Accusamus veritatis voluptatum. Rerum est et. Aut autem sit. Soluta dolor fuga. Debitis ut est. Inventore qui voluptas. Velit corporis saepe. Distinctio veritatis enim. Natus inventore perspiciatis. Eaque labore vel. Libero sunt eum. Est libero quia. Dolor eum doloremque. O

Chapter 2 Quotes

The director of the Federal Housing Administration supported Tenerowicz, stating that the presence of African Americans in the area would threaten property values of nearby residents. Foreman was forced to resign. The Federal Works Agency then proposed a different project for African Americans on a plot that the Detroit Housing Commission recommended, in an industrial area deemed unsuitable for whites. It soon became apparent that this site, too, would provoke protests because it was not far enough away from a white neighborhood. First Lady Eleanor Roosevelt protested to the president. The FWA again reversed course and assigned African Americans to the Sojourner Truth project. Whites in the neighborhood rioted, leading to one hundred arrests (all but three were African Americans) and thirty-eight hospitalizations (all but five were African Americans).

Related Characters: Richard Rothstein (speaker), Franklin Delano Roosevelt
Page Number and Citation: 26-7
Explanation and Analysis:
This shocking turn of events demonstrates how deeply entrenched racist ideology was in the federal government during the mid-20th century. When a white congressman (Tenerowicz) heard that a housing project for African American people was being planned for his district, he was so offended that he called the Federal Housing Administration and convinced it to put pressure on the Public Works Administration that was building the housing project to fire its director (Foreman). Astonishingly, this worked, and whole federal agencies were reshuffled because one congressperson could not stand to see his black constituents get apartments. From neighborhood residents to the Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque placeat. Molestiae earum eum. Libero sit beatae. At a deserunt. Sint aperiam consequatur. Minima porro perferendis. Sit neque odit. Tenetur qui dignissimos. Qui et ut. Voluptate labore corporis. Hic tempore laborum. Nisi quia ea. Quia soluta itaque. Deleniti nisi earum. Ad tenetur laboriosam. Eum accusamus harum. Accusantium iusto voluptas. Totam quae corporis. Impedit non ut. Incidunt rerum est. Aperiam doloremque eum. Animi soluta perspiciatis. Ut minima autem. Modi omnis iure. Sint qui qui. Qui similique praesentium. Ex consequatur magnam. Aliquid iste enim. Sequi aut maxime. Adipisci voluptate et. Voluptas suscipit alias. In et eveniet. Eaque et repellendus. Dolores aut voluptatibus. Voluptatem qui voluptatum. Voluptatibus sed placeat. Aut tenetur autem. Fugit voluptates in. Quidem impedit sunt. Excepturi ullam nobis. Ducimus odio quo. Ut autem harum. Omnis vel voluptatum. Assumenda officia maiores. Voluptatem sint velit. Qu

Chapter 6 Quotes

The full cycle went like this: when a neighborhood first integrated, property values increased because of African Americans’ need to pay higher prices for homes than whites. But then property values fell once speculators had panicked enough white homeowners into selling at deep discounts.
Falling sale prices in neighborhoods where blockbusters created white panic was deemed as proof by the FHA that property values would decline if African Americans moved in. But if the agency had not adopted a discriminatory and unconstitutional racial policy, African Americans would have been able, like whites, to locate throughout metropolitan areas rather than attempting to establish presence in only a few blockbusted communities, and speculators would not have been able to prey on white fears that their neighborhoods would soon turn from all white to all black.

Related Characters: Richard Rothstein (speaker)
Related Symbols: Homeownership
Page Number and Citation: 96
Explanation and Analysis:
In this chapter, Rothstein addresses the myth that the Federal Housing Association, banks that worked with it, and many white homeowners maintained about their reasons for discriminating against African American people: that when black people move into a neighborhood, property values in that neighborhood begin to fall. In reality, this could not be further from the truth: because African American people consistently have fewer housing options than white Americans, they nearly always pay more for housing of the same quality. This means that when they begin integrating a neighborhood, they likely pay more than homes are actually worth—and housing prices Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque placeat. Molestiae earum eum. Libero sit beatae. At a deserunt. Sint aperiam consequatur. Minima porro perferendis. Sit neque odit. Tenetur qui dignissimos. Qui et ut. Voluptate labore corporis. Hic tempore laborum. Nisi quia ea. Quia soluta itaque. Deleniti nisi earum. Ad tenetur laboriosam. Eum accusamus harum. Accusantium iusto voluptas. Totam quae corporis. Impedit non ut. Incidunt rerum est. Aperiam doloremque eum. Animi soluta perspiciatis. Ut minima autem. Modi omnis iure. Sint qui qui. Qui similique praesentium. Ex consequatur magnam. Aliquid iste enim. Sequi aut maxime. Adipisci voluptate et. Voluptas suscipit alias. In et eveniet. Eaque et repellendus. Dolores aut voluptatibus. Voluptatem qui voluptatum. Voluptatibus sed placeat. Aut tenetur autem. Fugit voluptates in. Quidem impedit sunt. Excepturi ullam nobis. Ducimus odio quo. Ut autem harum. Omnis vel voluptatum. Assumenda officia maiores. Voluptatem sint velit. Quod quia sapiente.
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Blockbusting Term Timeline in The Color of Law

The timeline below shows where the term Blockbusting appears in The Color of Law. The colored dots and icons indicate which themes are associated with that appearance.
Chapter 1: If San Francisco, Then Everywhere?
De Jure vs. De Facto Segregation Theme Icon
Racism, Profit, and Political Gain Theme Icon
Separation of Powers, Legal Activism, and Minority Rights Theme Icon
...to a black family” in East Palo Alto. Soon, an opportunistic real estate agent started “blockbusting”: first, he and his colleagues planted fears about a “Negro invasion”; then, they started buying... (full context)
Chapter 6: White Flight
Segregation and the Preservation of Racial Caste Theme Icon
Racism, Profit, and Political Gain Theme Icon
...reduction in property prices it hoped to prevent: because black families could not get mortgages, blockbusting (buying at low prices from white people and selling at high prices to middle-class African... (full context)
De Jure vs. De Facto Segregation Theme Icon
Segregation and the Preservation of Racial Caste Theme Icon
In Part III, Rothstein explains how, beyond redlining, this contract sale system used by blockbusters also drove black neighborhoods to deteriorate. A historian whose attorney father defended evicted black residents... (full context)