What is a primary consequence of redlining practices?

The primary consequence of redlining practices is the denial of services based on racial composition. Redlining refers to the systematic practice of denying or limiting financial services, such as loans or insurance, to residents in certain neighborhoods, often because of the racial or ethnic makeup of those neighborhoods. This practice historically marginalized communities, particularly African American families and other racial minorities, leading to a significant lack of access to homeownership and investment opportunities.

Due to redlining, many individuals in these communities faced higher barriers to obtaining mortgages, which perpetuated cycles of poverty and segregation. The effects are still seen today, as areas that were redlined often experience ongoing disinvestment and limited access to quality services, affecting the overall economic and social health of those neighborhoods.

The other choices present consequences that do not accurately reflect the outcomes of redlining. For example, increased racial diversity in neighborhoods is unlikely as redlining usually reinforces segregation instead. Lower property values can be an indirect consequence, but they are not the primary issue directly stemming from redlining practices. Higher loan approval rates would contradict the very nature of redlining, which specifically involves denying loans to residents in targeted areas.