What does redlining refer to?

Redlining refers specifically to the discriminatory practice in which minority groups are systematically denied access to mortgage loans and other financial services based on the neighborhood in which they reside. This practice often involves banks and insurance companies delineating areas perceived as high-risk based on racial or ethnic composition, using red ink to outline those areas on maps. The consequences of redlining are profound, leading to diminished home ownership and investment opportunities for residents in those neighborhoods, perpetuating cycles of poverty and segregation.

Understanding redlining in this context highlights how discriminatory practices have long-lasting impacts on communities and contributes to discussions about fair housing and equitable lending practices. The other choices describe concepts that, while relevant to urban planning and real estate, do not capture the essence of redlining, which is focused on racial discrimination in lending practices rather than zoning, property evaluation, or building code regulations.