Systemic Racism and Discrimination of Marginalized Groups

Discriminatory and racist housing policy and practices (including redlining) have created segregated communities and neighborhoods with underfunded schools, over-policing, and less access to economic opportunities.  As a result, Black and Brown communities in particular are disproportionately exposed to poverty, poor housing conditions, and homelessness.

Housing Discrimination

Since 1968, the Fair Housing Act has aimed to protect tenants from discrimination when renting or buying a home. Yet, discrimination persists from landlords and lenders who will look to proxies such as source of income, eviction records, and criminal background. 

Gentrification: 

Too often, revitalization efforts to disadvantaged neighborhoods price out the existing residents, who are often part of marginalized groups. This leaves people with even fewer options for safe and affordable housing.

Exclusionary Zoning: 

When zoning efforts ban affordable housing development and reinforce NIMBY sentiments, they essentially maintain segregation not only in housing, but also in education and job Opportunities.

The Long-Lasting Effects of Redlining

Redlining denied Black and Brown communities equal access to housing opportunities, leading to the racial wealth gap and continued housing segregation today.

When Housing is Denied

Housing discrimination denies people of the core human need for a safe and stable place to live. And when people can’t access a variety of options, they are increasingly forced into units they may not be able to afford. For example, Fifty-seven percent of all respondents in a 2024 Zillow survey reported experiencing some type of housing discrimination during their life, with high episodes among LGBTQ+ respondents (79%), Blacks (69%), and Hispanics and Latinos (64%).

Racism and discrimination against marginalized groups, including Native Hawaiian, Pacific Islander, American Indian, Alaska Native, Black, and Latino people, LGBTQ+, and people with disabilities, limits economic opportunity and traps people in poverty. Practices and policies that limit employment, fair wages, and home ownership all contribute to disparate levels of economic vulnerability that can ultimately lead to homelessness.

Disproportionate Poverty

Discrimination and marginalization are drivers of poverty. In 2023, the poverty rate for the nation was 11.1 percent. Meanwhile, the rate for LGBTQ+ people was 17 percent, with a higher rate (21.2 percent) rate among trans people. For Black Americans the poverty rate was 17.9 percent. For people with disabilities, it was 20.3 percent.

Disparate Wages

The systemic inequity in pay leaves entire groups of people struggling to make ends meet. For example, there is a 24.4 percent gap between the wages for the median Black worker compared to the median White worker in the United States.

Loss of Economic Opportunity

Home ownership has traditionally been seen as a springboard for building wealth. However, households of color have been systematically denied this opportunity for generations. Even today, the home ownership rate for Black Americans is 44%, compared to 65.5% for the nation, and 72% for White Americans.

The systemic discrimination that drives homelessness today has its roots in racist housing policies from decades ago. These policies, including redlining, still affect Black, Indigenous, and other People of Color (BIPOC), leading to unequal access to safe and stable housing. The marginalization extends to  LGBTQ+ individuals, especially youth, further exacerbates their risk of becoming homeless.

Racial Disparities in Homelessness

The lasting effects of systemic racism, such as redlining and housing discrimination, have disproportionately affected BIPOC communities. African Americans make up over one-third of the homeless population despite representing only 14.4 percent of the U.S. population, and these disparities persist across multiple social and economic indicators.

LGBTQ+ Communities and Homelessness

The intersection of race and LGBTQ+ identity creates compounded barriers to housing stability. LGBTQ+ individuals, particularly youth, often face family rejection, employment discrimination, and violence. Black and Latinx transgender individuals experience especially severe housing insecurity, being disproportionately represented in homelessness statistics due to the combined impact of racial discrimination, transphobia, and economic marginalization. These intersectional forms of discrimination create unique obstacles in accessing stable housing, emergency shelter services, and support systems.

The Impact of Incarceration

The racial disparities in incarceration have continually worsened. The rate for Black Americans has tripled between 1869 and 2016 and is more than six times the rate of White incarceration. These disparities are no accident: Black and Brown people are at far greater risk of being targeted, profiled, and arrested for minor offenses, especially in high poverty areas. The implications are far reaching: a criminal history can keep people from securing housing and employment, and people exiting jail and prison have high rates of homelessness.

Access to Quality Care

People of color are far less likely to have health insurance than White people, especially in states without Medicaid expansion. An estimated 30 million Americans are uninsured, with about half being people of color. Lack of insurance for people with chronic medical conditions and/or untreated serious mental illness puts them at risk of homelessness or being precariously housed.