Worcester Business Journal

wbjournal.com | December 12, 2022 | Worcester Business Journal 11 Redlining: An Economic Legacy The Worcester Business Jour- nal partnered with the nonprofit Worcester Regional Research Bureau on this project to examine how rent increases over the last decade have impacted the city and its businesses. as well as an historic look at how financial decisions rooted in racism 86 years ago have exacerbated the housing and workforce problems today. This second part "Trapped in a redlined cycle" covers the long legacy on redlining in Worcester neighborhoods. To read the first part "Worcester has a rent problem" on how rising rents are creating work- force and social problems in the city, flip to page 6. To read the entire WRRB report "Static Income, Rising Costs: Renting in the Heart of the Commonwealth," visit wrrb.org. REDLINING: An Economic Legacy Inequality project, where he has collected redlining maps for more than 200 cities in America and posted them online with an interactive tool. WRRB compared the redlined map to modern Worcester neighborhoods, using 2010-2022 demographic, eco- nomic, and health data to see how the decisions made back in 1936 reverberat- ed throughout the city. Outside of a few neighborhoods, WRRB found the way the map was drawn is largely how the city is shaped today in terms of wealth. e map not only set the standards for its day, but it locked neighborhoods into economic cycles, where those scored the worst 86 years ago are still at the bottom. e Main South area was considered the worst neighborhood in the city in 1936, as HOLC said its residents were comprised of French, Polish, and Lith- uanians, saying on the redlining map "e majority are industrial workers and laborers of the poorer class." Since the HOLC's Hazardous label in 1936 signaled to banks the Main South neighborhood was a risky investment, residents who lived there largely couldn't get loans to buy or renovate homes. e main people who could afford to own homes were the wealthy who lived outside the neighborhood and rented to the people who lived in Main South. e neighborhood remains overwhelmingly renter-occupied today, and as rental prices have spiked throughout the city since 2010, the people bearing the brunt of being cost-burdened by these rising prices are those living in the neighbor- hoods redlined in 1936. Using the 2020 Social Vulnerability Index compiled by the U.S. Centers for Disease Control to determine how neighborhood conditions impact people's health, the WRRB found residents of Main South now are the most vulnerable in Worcester. In fact, when looking at that So- cial Vulnerability Index data, the two neighborhoods ranked the best in 1936 stayed at the top while the bottom three remained there. What also becomes apparent when looking at the map is that the impact of redlined neighborhoods stretch beyond their border and that even being near a redlined neighborhood meant a section would eventually falter. e redlined map of Worcester follows the guidelines set up by HOLC and de- The legacy of redlining on Worcester neighborhoods Since a map commissioned in 1936 by the Home Owners' Loan Corp. ranked Worcester's regions by viability for home loans and those rankings were used to deny fair access to loans, the socioeconomic rank of those Worcester neighborhoods have largely stayed the same. 2022 social Modern day neighborhoods vulnerability index 1936 zone included in zone 1936 rank score (rank among 15) 1 Salisbury Street and Hammond Heights Best 0.351 (1) 2 Tatnuck and West Side Still desirable 0.446 (2) 6 Elm Park Still desirable 0.664 (3) 4 Burncoat and Greendale Still desirable 0.725 (4) 8 Northern parts of Indian Hill and Burncoat Definitely declining 0.726 (5) 12 Grafton Hill and Union Hill Definitely declining 0.730 (6) 5 Columbus Park and around Clark University Still desirable 0.737 (7) 3 Indian Lake and Assumption University Still desirable 0.753 (8) 11 Plantation Street and Chandler Hill Definitely declining 0.793 (9) 10 Morris Square Definitely declining 0.801 (10) 9 Webster Square and Beaver Brook Definitely declining 0.833 (11) 7 Vernon Hill Still desirable 0.867 (12) 14 Indian Lake East and North Lincoln Street Hazardous 0.886 (13) 13 Quinsigamond Village and Broadmeadow Brook Definitely declining 0.888 (14) 15 Main South and South Worcester Hazardous 0.895 (15) Notes: The modern day neighborhoods were determined by comparing the 1936 redlining map with 2022 map of Worcester, and each neighborhood determination is approximate. The Social Vulnerability Index is a composite score from the U.S. Centers for Disease Control made from 16 U.S. Census data points, to determine neighborhoods' potential negative effects on human health; a higher score indicates a more vulnerable population. Sources: University of Richmond, Google Maps, Neighborhood Scout, U.S. Centers for Disease Control Continued on page 12 PHOTO | CHRISTINE PETERSON Continued from page 9 Robert Nelson, professor at the University of Richmond The Tatnuck and West Side neighborhood was rated the second highest in the 1936 redlined map, and it remains one of the top two for socioeconomic benefit for its residents.

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