In the context of housing, what does the term "redlining" refer to?

The term "redlining" refers to the selective denial of services, such as mortgage loans and insurance, based on the geographic area in which a person lives. Historically, this practice has often been associated with racial discrimination, where minority neighborhoods were marked on maps in red, indicating they were high-risk areas for lenders and insurers. This led to a systemic denial of financial services to residents in these areas, contributing to long-lasting economic and social disparities.

Understanding this concept is crucial in recognizing the historical context of discriminatory practices in housing and lending, which have significantly impacted community development and accessibility to affordable housing. The incorrect choices reflect practices that do not encapsulate the intentional and discriminatory nature inherent in redlining, such as universal lending practices or unrelated infrastructure projects.