As the post-War suburban boom hits its stride, policymakers sought to revitalize the urban areas that had become home to most BIPOC families. Perceptions of such neighborhoods as blighted led to whole-scale removal of thriving communities, with insufficient compensation or alternative housing options provided to displaced households. Meanwhile, the expanded supply of public and subsidized housing offered a solution to affordability challenges faced by many low-income households but exacerbated the isolation and concentration of poverty within majority-BIPOC neighborhoods. The Civil Rights era finally prompted policy action to acknowledge these injustices but did little to undo the harm caused by centuries of discrimination.
At the time of the U.S. Supreme Court’s ruling in Shelley, it was estimated that half of all housing built in the prior 40 years had a racially restrictive covenant preventing its occupation by BIPOC-led households. The Court ruled that such covenants were permissible within a private contract, but that public or judicial enforcement of them would violate the equal protection clause of the 14th amendment. Thus, racial covenants on properties remained legal, but only so long as both parties to a purchase or lease of the property agreed to adhere to them.