Unpacking the Legacy of Real Estate Redlining on Potrero Hill

June 22, 2025 - 10:29

“Racial segregation does not just happen; it is made,” wrote Ira Katznelson, author of Fear Itself. This statement resonates deeply when examining the historical context of real estate practices in neighborhoods like Potrero Hill. Established by the U.S. Congress in 1933, the Home Owners’ Loan Corporation (HOLC) aimed to mitigate the wave of home foreclosures that swept the nation during the Great Depression. Over the course of three years, HOLC refinanced more than one million homes, leading to a significant increase in home ownership across the country.

However, this initiative was not without its flaws. The policies implemented by HOLC often perpetuated racial segregation by denying loans to residents in predominantly Black and immigrant neighborhoods. This practice, known as redlining, systematically marginalized communities and limited access to home ownership for many families. The impact of these decisions continues to be felt today, as Potrero Hill and similar neighborhoods grapple with the long-lasting effects of historical inequities in housing policy. Understanding this legacy is crucial in addressing ongoing disparities in access to housing and wealth accumulation.