IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v43y2006i7p1061-1086.html
   My bibliography  Save this article

'When the Banks Withdraw, Slum Landlords Take Over' : The Structuration of Neighbourhood Decline through Redlining, Drug Dealing, Speculation and Immigrant Exploitation

Author

Listed:
  • Manuel B. Aalbers

    (Amsterdam Institute for Metropolitan and International Development Studies (AMIDSt), Department of Geography and Planning, University of Amsterdam, Nieuwe Prinsengracht 130, 1018 VZ Amsterdam, the Netherlands, M.B.Aalbers@uva.nl)

Abstract

Rather than viewing neighbourhood decline as a natural process resulting from the in-flow of low-income households, this study uses a socio-spatial approach that looks at the structuration of neighbourhood decline by emphasising the power of agents/actors, linking the structure of the real estate industry to the development of the neighbourhood. Landlords and banks are not merely automata of the price mechanism that steer the natural operation of the market, but should be seen as intentionally and unintentionally restructuring the local real estate market and thus possibly producing, or contributing to, processes of neighbourhood decline. This paper presents the Tarwewijk (Rotterdam, the Netherlands) as a case study of neighbourhood decline. Attention is paid to the social and physical decline of the neighbourhood, drug dealing, undocumented immigrants and processes impacting the housing market such as speculation, blockbusting, milking and redlining. It is argued that the retreat of 'formal' actors, such as banks and bona fide landlords, stimulates the rise of the underworld in both the housing and drugs markets.

Suggested Citation

  • Manuel B. Aalbers, 2006. "'When the Banks Withdraw, Slum Landlords Take Over' : The Structuration of Neighbourhood Decline through Redlining, Drug Dealing, Speculation and Immigrant Exploitation," Urban Studies, Urban Studies Journal Limited, vol. 43(7), pages 1061-1086, June.
    • Handle: RePEc:sae:urbstu:v:43:y:2006:i:7:p:1061-1086
    DOI: 10.1080/00420980600711365
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980600711365
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980600711365?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eric J. Levin & Robert E. Wright, 1997. "Speculation in the Housing Market?," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1419-1437, August.
    2. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    3. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
    4. Reynold F. Nesiba, 1996. "Racial Discrimination in Residential Lending Markets: Why Empirical Researchers Always See It and Economic Theorists Never Do," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(1), pages 51-77, March.
    5. James A. Berkovec & Glenn B. Canner & Stuart A. Gabriel & Timothy H. Hannan, 1994. "Race, redlining, and residential mortgage loan performance," Proceedings, Federal Reserve Bank of Philadelphia, pages 263-298.
    6. Elvin K. Wyly & Steven R. Holloway, 1999. "“The Color of Money” revisited: Racial lending patterns in Atlanta's neighborhoods," Housing Policy Debate, Taylor & Francis Journals, vol. 10(3), pages 555-600, January.
    7. John Yinger, 1995. "Opening Doors: How to Cut Discrimination by Supporting Neighborhood Integration," Center for Policy Research Policy Briefs 3, Center for Policy Research, Maxwell School, Syracuse University.
    8. Anthony Downs & Luigi Laurenti, 1960. "An Economic Analysis of "Property Values and Race" (Laurenti)," Land Economics, University of Wisconsin Press, vol. 36(2), pages 181-188.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David J. Madden, 2014. "Neighborhood as Spatial Project: Making the Urban Order on the Downtown Brooklyn Waterfront," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(2), pages 471-497, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    2. Yan Zhang, 2013. "Fair Lending Analysis of Mortgage Pricing: Does Underwriting Matter?," The Journal of Real Estate Finance and Economics, Springer, vol. 46(1), pages 131-151, January.
    3. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2018. "What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders," The Review of Financial Studies, Society for Financial Studies, vol. 31(1), pages 175-205.
    4. Song Han, 2011. "Creditor Learning and Discrimination in Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 1-27, October.
    5. Robert B. Avery & Kenneth P. Brevoort & Glenn Canner, 2012. "Does Credit Scoring Produce a Disparate Impact?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 40, pages 65-114, December.
    6. Jed L. DeVaro & Jeffrey M. Lacker, 1995. "Errors in variables and lending discrimination," Economic Quarterly, Federal Reserve Bank of Richmond, issue Sum, pages 19-32.
    7. Avery, Robert B. & Beeson, Patricia E. & Sniderman, Mark S., 1999. "Neighborhood Information and Home Mortgage Lending," Journal of Urban Economics, Elsevier, vol. 45(2), pages 287-310, March.
    8. Brent C Smith & Kenneth N. Daniels, 2018. "Unintended Consequences of Risk Based Pricing: Racial Differences in Mortgage Costs," Journal of Financial Services Research, Springer;Western Finance Association, vol. 54(3), pages 323-343, December.
    9. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1547-1640, Elsevier.
    10. Judith Robinson, 2002. "Race, Gender, and Familial Status: Discrimination in One US Mortgage Lending Market," Feminist Economics, Taylor & Francis Journals, vol. 8(2), pages 63-85.
    11. Ghent, Andra C. & Hernández-Murillo, Rubén & Owyang, Michael T., 2014. "Differences in subprime loan pricing across races and neighborhoods," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 199-215.
    12. David Harrison & Michael Seiler, 2015. "The Paradox of Judicial Foreclosure: Collateral Value Uncertainty and Mortgage Rates," The Journal of Real Estate Finance and Economics, Springer, vol. 50(3), pages 377-411, April.
    13. Nolan Kopkin, 2018. "The conditional spatial correlations between racial prejudice and racial disparities in the market for home loans," Urban Studies, Urban Studies Journal Limited, vol. 55(16), pages 3596-3614, December.
    14. Joseph T. L. Ooi & Thao T. T. Le, 2012. "New Supply and Price Dynamics in the Singapore Housing Market," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1435-1451, May.
    15. Riddel, Mary, 1999. "Fundamentals, Feedback Trading, and Housing Market Speculation: Evidence from California," Journal of Housing Economics, Elsevier, vol. 8(4), pages 272-284, December.
    16. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-188, May.
    17. Jie Wang & Biyu Peng & Xiaohua Xia & Zhu Ma, 2021. "Are Housing Prices Sustainable in 35 Large and Medium-Sized Chinese Cities? A Study Based on the Cheap Talk Game and Dynamic GMM," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    18. Nothaft, Frank E. & Perry, Vanessa G., 2002. "Do mortgage rates vary by neighborhood? Implications for loan pricing and redlining," Journal of Housing Economics, Elsevier, vol. 11(3), pages 244-265, September.
    19. Stanley D. Longhofer & Stephen R. Peters, 1998. "Self-selection and discrimination in credit markets," Working Papers (Old Series) 9809, Federal Reserve Bank of Cleveland.
    20. Song Han, 2001. "On the Economics of Discrimination in Credit Markets," Finance and Economics Discussion Series 2002-02, Board of Governors of the Federal Reserve System (U.S.).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:43:y:2006:i:7:p:1061-1086. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.