Fabulous Pikachu

INFO 2950 Project

Our experiment investigates the relationship between redlining, a housing practice in the United States, and the racial makeup of neighborhoods. Redlining refers to the system implemented by the Home Owners’ Loan Corporation (HOLC) during the 1930s, where neighborhoods were assigned letter grades based on their perceived risk for mortgage lending. Using a dataset that combines 2020 Census data with redlining maps and HOLC grades from 1935 to 1940, the analysis focuses on five racial categories: White, Black, Hispanic, Asian, and Other. We conducted statistical analysis to evaluate the significance of differences in the percentage of each racial group across HOLC grades, with particular attention given to the highest-grade (A) and lowest-grade (D) areas. 

• Our research question: Is there a correlation between the dominant racial makeup of an area and the HOLC grade it receives? 

Based on the results of a number of hypothesis tests, our findings demonstrate a clear relationship between the dominant racial makeup of an area and the HOLC grade assigned. We find that areas with higher percentages of White residents tend to receive higher grades, while areas with higher percentages of Black and Hispanic residents, as well as those who identify as another race, are more likely to live in areas which received lower grades. However, we could not find any significant relationship between HOLC grades and percentages of Asian residents.