Rise of the Suburbs
The GI Bill and Federal Housing Administration (FHA) loans made homeownership a reality for many American families in the 1950s. Families seeking to escape crowded cities—those who could afford to—looked to new housing construction outside of the city. Newly built highways and commuter trains made cities accessible to these new suburbanites. Companies like Levitt & Sons, seeking to capitalize on the growing demand, purchased land in the suburbs. From 1947 to the 1960s, Levitt adopted the assembly line method used to produce automobiles to produce as many 30 houses a day in “Levittowns” and other neighborhoods all over the Northeast. Family homeownership rose from 40 percent in 1945 to 60 percent by 1960.
Aerial view of the Levittown housing project in Pennsylvania.
The ability to purchase a newly constructed home became associated with attaining a piece of the American dream, an equal opportunity to achieve success and prosperity through hard work. However, this dream was not open to all. A policy known as redlining severely limited Black people’s ability to obtain a mortgage from the bank. The FHA focused primarily on assistance for white people and would deny insurance to builders constructing homes in or near Black neighborhoods. The FHA’s 1935 underwriting manual stated, “If a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally leads to instability and a reduction in value.” This language was not removed until 1947.
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