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Reverse redlining occurs when a lender or insurer targets majority-minority neighborhood residents with inflated interest rates by taking advantage of the lack of lending competition relative to non-redlined neighborhoods.[5][6] The effect also emerges when service providers artificially restrict the supply of real estate available for loanable funds to nonwhites, thus providing alternative pretext for higher rates. Neighborhoods which were targeted for blockbusting were also subject to reverse redlining.[7]

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The United States Federal Government has enacted legislation since the 1970s to reduce the segregation of American cities. While many cities have reduced the amount of segregated neighborhoods, some still have clearly defined racial boundaries. Since 1990, the City of Chicago has been one of the most persistently racially segregated cities, despite efforts to improve mobility and reduce barriers. Other cities like Detroit, Houston, and Atlanta likewise have very pronounced black and white neighborhoods, the same neighborhoods that were originally redlined by financial institutions decades ago.[50] While other cities have made progress, this continued racial segregation has contributed to reduced economic mobility for millions of people.

Formerly redlined neighborhoods in places like Los Angeles have been shown to be more likely to have a gang injunction issued against them, as the work of geographer Stefano Bloch and anthropologist Susan A. Phillips shows.[51]

Policies related to redlining and urban decay can also act as a form of environmental racism, which in turn affect public health. Urban minority communities may face environmental racism in the form of parks that are smaller, less accessible and of poorer quality than those in more affluent or white areas in some cities, which may have an indirect effect on health, since young people have fewer places to play, and adults have fewer opportunities for exercise.[79]A 2022 study published in the journal Environmental Science & Technology Letters found redlined areas in 202 US cities had higher levels of air pollution (nitrogen dioxide and fine particulate matter) in 2010, so 80 years later.[80]

Health inequality in the United States persists today as a direct result of the effects of redlining. This is because health in America is synonymous with wealth, both of which minority groups have been denied as a result of discriminatory practices. Wealth affords the privilege of living in a neighborhood or community with clean air, pure water, outdoor spaces and places for recreation and exercise, safe streets during the day and night, infrastructure that supports the growth of intergenerational wealth through access to good schools, healthy food, public transportation, and opportunities to connect, belong, and contribute to the surrounding community. Wealth also provides stability of home as those with capital are not confined to the deteriorating housing stock that minority groups who were redlined were forced to try and rehabilitate without access to loans.[95][96][97][98][99]

Redlining has contributed to the long-term decline of low-income, inner city neighborhoods and the continuation of ethnic minority enclaves. Compared to prospering ethnic minority areas, historically redlined or other struggling black communities need targeted investments in infrastructure and services in order to prosper.[109]

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