INSTITUTIONAL RACISM IN THE HOUSING MARKET: A STUDY OF GROWTH POLES AND INVESTMENT PATTERNS

A theory of investment in urban homeownership is proposed. The theory, based on growth pole theory in regional economics, is used to conceptualize a possible pattern of cumulative growth investments in urban housing sub-markets. As presented, the theory suggests that housing sub-markets which received lower housing investments in early time periods because of racial discrimination will continue to get only low levels of investment. This is hypothesized to occur because real estate market actors rely on levels of past investment as a guide for future investment. It is suggested these cumulative growth processes create centers of positive and negative growth within the housing markets of cities. Both direct investments in homeownership and in real estate market infrastructure are hypothesized to follow these patterns. Three sets of data from Dallas, Texas are used to test these hypotheses. The tests generally support the suggestions of the theory. A series of implications for public policy on homeownership are discussed in the conclusion.