Compounded Advantage in Real Estate: A Tale of Two Neighborhoods in Greensboro

By Deena Hayes-Greene

In 1790, the 1st Congress, 2nd Session, passed the Naturalization Act, declaring that only White persons could become U.S. citizens. This law not only excluded Black and Indigenous people from the economic benefits of citizenship but also set the stage for compounded advantage, where access to land, wealth-building opportunities, and social mobility were systematically reserved for White Americans. Over the centuries, this racialized advantage materialized through policies that shaped cities, including Greensboro, NC, where I live.

The long-term effects of racial exclusion and discriminatory housing policies are evident when comparing two Greensboro neighborhoods: Irving Park and Benbow Park.

Irving Park: A Legacy of Exclusive Wealth

Irving Park, developed in the early 20th century, was designed as an exclusive White enclave centered around the Greensboro Country Club. During the New Deal era, federally backed mortgages and FHA loans helped White families secure homes in these neighborhoods while redlining policies systematically excluded Black families from similar opportunities.

Homes in Irving Park have consistently appreciated, with many properties today worth $800,000+.

Families in this neighborhood benefited from high property values, well-resourced schools, and intergenerational wealth transfer.

These advantages compound over time, enabling home equity to fund college tuition, business ventures, and additional real estate investments, further cementing economic stability.

Benbow Park: Systematic Disadvantage

By contrast, Benbow Park, a historically Black neighborhood, was shaped by racial segregation, redlining, and disinvestment.

In the mid-20th century, Black professionals and middle-class families built homes in Benbow Park because they were barred from buying property in White neighborhoods like Irving Park.

Due to redlining and a lack of FHA-backed loans, homeowners in Benbow Park faced higher interest rates and fewer financial opportunities to build generational wealth.

Urban renewal and infrastructure neglect further suppressed property values, preventing Black homeowners from experiencing the same appreciation seen in Irving Park.

Even today, homes in Benbow Park are often valued well below their counterparts in Irving Park, reflecting the long-term effects of racialized housing policies.

Why Colorblind, Merit-Based Policies Fall Short - Ignoring historical disparities and pushing for "colorblind" merit-based solutions overlooks how wealth in neighborhoods like Irving Park was established through exclusionary policies. Black families were denied the same homeownership opportunities that allowed White families to build generational wealth. The differences between Irving Park and Benbow Park show how racial advantages and disadvantages accumulate over time.

Addressing these inequities necessitates intentional policies that acknowledge the racial history of wealth accumulation and actively seek to dismantle the systemic barriers that still exist today. Anything short of this would continue to perpetuate the race-based, meritless opportunities that have characterized land ownership and economic mobility since before 1790.