What can be a consequence of redlining in communities?

Redlining refers to the practice where banks and insurers intentionally deny services to specific neighborhoods based on their racial or ethnic composition. This discriminatory practice results in systemic disinvestment in the affected communities, leading to a lack of financial resources for both residents and businesses. As financial institutions refuse to lend money or provide insurance, property values in these areas tend to stagnate or decline. Consequently, the neighborhoods often experience deterioration—public services may suffer due to reduced tax revenues, and the overall quality of life can diminish because of insufficient investment in development and infrastructure.

The correct answer underscores the significant and detrimental impact redlining has on communities, illustrating how economic neglect can lead to broader social and physical decline within the neighborhood.