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The Evolving Challenges of
Fair Housing Since 1968:
Open Housing, Integration,
and the Reduction of
Ghettoization

George C. Galster

Wayne State University

As the legislative history surrounding the passage of the Fair Housing Act of 1968 (Polikoff, 1986), subsequent court rulings (for example, Zuch v. Hussey, 1975), and Federal policy pronouncements (Smith, 1993), make clear there are multiple fair housing goals. Three are relevant for this article:

The elimination of differential treatment, which discriminates on the basis of race.1 The creation of stable, racially diverse neighborhoods.

The reduction of ghettos occupied by poor minority households.

I believe that we have made, at best, only halting-far from satisfactory—progress since 1968 in achieving the first two goals. Moreover, we have clearly regressed with regard to the last goal.

Due to our retrogression on the last goal, we have achieved little on the first two goals despite considerable increases in institutional fair housing capacity. Because we have moved further from attaining this last goal of eliminating minority poverty ghettos, race relations in this Nation continue to be poisoned by stereotypes generalized from ghetto behaviors. Rationalization of these stereotypes provides a basis for justifying continued discrimination and self-segregation by Whites, with the concomitant difficulties in progressing toward the first two goals. This process of circular causation I call spatial racism. As a consequence, the emerging challenge for fair housing is to reverse "ghettoization," which implies fighting both differential treatment directed at lower income minorities and the adverse impacts of a host of institutional practices related to metropolitan spatial arrangements.

The first section of this article assesses progress since 1968 in ending differential treatment discrimination in private housing, public housing, and mortgage markets. I cite evidence on the changing incidence of such discrimination and review important enforcement and other public policy initiatives. The second section evaluates progress with regard to efforts to foster stable, racially diverse neighborhoods. The third section examines the discouraging rise in ghettos-concentrated minority poverty at our urban cores. The next section bears evidence that the constrained opportunity structures in such ghettos induce a variety of rational if socially destructive attitudinal and behavioral responses. Put differently, we have structured metropolitan geography in a way that creates adverse impact discrimination. These adaptive responses to ghettoization, which are constantly sensationalized by media reports, reinforce Whites' stereotypes about minorities and thus legitimize their acts of differential treatment based on statistical discrimination and encourage the development of policies having adverse racial impacts. Then I propose an expanded definition of fair housing to include the opportunity to live in an environment where one's life chances are not unduly constrained. Finally I suggest intensifying efforts directed at expanding spatial opportunities for lower-income minorities, which-in conjunction with parallel public policy efforts are designed to reduce ghettoization and geographic inequality of opportunity.

Two terms are central to my argument and are not often distinguished in an analysis of fair housing: differential treatment and adverse impact. The form of housing discrimination known as differential treatment refers to acts that disfavor a minority homeseeker solely on the basis of minority status. If housing agents apply a different set of rules or practices when dealing with a minority, they are engaging in differential treatment discrimination. Adverse impact refers to the implementation of a policy or practice thatthough evenhandedly applied to all races-nevertheless results in disproportionately negative consequences for the minority and cannot be justified on the grounds of business necessity (Schwemm, 1992; Yinger, 1995, 1998). Though the fair housing laws have typically been enforced with an eye toward eradicating differential treatment discrimination, the housing market is increasingly operating in ways that produce adverse impacts, especially for lower income minorities.

Progress in Fighting Differential Treatment

Private Housing

Over the last 30 years of combating racial discrimination in the sale or rental of privately owned housing we have built considerable institutional capacity and intensified our enforcement efforts. Yet we apparently have made little headway against the problem.

There is no doubt that the Nation's capacity to enforce fair housing laws has risen dramatically since 1968. Private, nonprofit fair housing organizations have been one central component of this capacity. They have been encouraged since 1980 by financial support from the U.S. Department of Housing and Urban Development's (HUD's) Fair Housing Assistance Program. Now nearly 100 such organizations investigate and gather evidence related to fair housing complaints and conduct enforcement testing initiatives and educational and training seminars for the public and real estate professionals. These organizations are also parties to litigation. As a result of the 818 suits brought by these private fair housing organizations from 1990 to 1997, courts have granted $95 million in disclosed financial awards (Fair Housing Center for Metropolitan Detroit, 1998).

Both HUD and the U.S. Department of Justice (DOJ) expanded their fair housing enforcement activities significantly during the 1990s (Galster, 1995), the centerpiece of which is stepped-up efforts involving testing. HUD's Fair Housing Initiatives Program (FHIP),

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