St. Louis has a long history of redlining and suburbanization. As early at 1914, restrictive deed covenants were placed on neighborhood residences. The city designated specific areas for black residents at the same time, boxing residents into a small area. By 1945 a significant portion of houses in the city had these restrictive covenants, only spurring inner-city inequality. In 1958, the St. Louis Real Estate Exchange began to allow one black occupancy per block in the city. When previously segregated neighborhoods began to integrate, white flight skyrocketed.
1916: Designated blocks for black residents (Gordon, 72)
1945: Areas with restrictive covenants (Gordon, 74)
When black residents began to try and move, private realtors and city officials partnered to entrench racist housing policies. City planners in the 1950s and '60s reflected the fear of black expansion North and West working to implement subtly segregationist policies. Real estate boards and companies held the primary goal of maximizing property value. Social agreement decided that black populations in specific areas were bad for property value so “real estate boards, in St. Louis and elsewhere, adhered to the professional conviction that African American occupancy was a public nuisance and a threat to property values” (Gordon, 83). Realtors showed black buyers houses only in “transitional neighborhoods” regardless of a prospective buyer's price range. White buyers were steered away from those same neighborhoods.
In the post-war era, federally, New Deal programs were implemented to “subsidize segregation” and afford white homebuyers extensive privileges. The city of St. Louis enforced these ideas through their property tax assessment overhaul. “The only ‘full value’ property in the City, by this reckoning, lay in the far northwest and southwest corners bordering St. Louis County—the latter largely protected by deed Covenants” (Gordon, 89). The result was highly discounted property in the neighborhoods with predominantly black populations and stable property values in white neighborhoods, allowing for more freedom and social mobility.
Residential districts, 1940—assessed value discounts based on location (Gordon, 90).
1937: Residential security ratings by the Home Owners Loan Corporation (Gordon, 92).
The Federal Housing Authority (FHA) played a significant role in St. Louis’ suburbanization. By 1947, their Underwriting Manual’s explicit references to race had been largely removed but notions of what populations inhabited safe and high-value neighborhoods remained. The FHA in collaboration with the city of St. Louis began to designate which areas were safe, of high-value—and predominantly white—and which were underdeveloped or transitional. These practices and value classifications impacted which families could get insurance, and at what price. It similarly affected the affordability to areas and restricted mobility (through selling one’s home) in areas that were seen as less valuable.
The history and discriminatory practices of St. Louis’s real estate companies and city government gained it the title of one of the "most segregated" cities in America (UC Berkeley).
These practices did not end abruptly. “As late as 1968, the ‘Valuation Instructions for Appraisers’ used in the St. Louis FHA office warned against ‘change in occupancy’ or the ‘income or social characteristics of the occupants other than those well established in the neighborhood.’’ (Gordon, 93).
West St. Louis suburbs circa 1950s