By A Legacy of Exclusion
The Hidden Origins of HOAs: A Legacy of Exclusion
​While modern Homeowners Associations (HOAs) are often associated with manicured lawns and community pools, their origins are deeply rooted in a more complex social history. Originally emerging in the mid-19th century, these private organizations saw a massive surge in popularity during the 1960s. This growth wasn’t just about property values; it was inextricably linked to the demographic shifts of American suburbia.
​From Legal Covenants to Private Governance
​Before the mid-20th century, many property deeds contained “racially restrictive covenants” explicit language that barred Black families and other minorities from buying specific homes. However, the legal landscape shifted dramatically with the landmark 1948 Supreme Court case, Shelley v. Kraemer, which ruled that courts could no longer enforce these discriminatory contracts.
​In response to this ruling and the subsequent desegregation of schools throughout the 1950s and 60s, the HOA model skyrocketed. These associations provided a new, private way to maintain the “exclusionary promise” that law-mandated segregation once held. By operating as private entities, they could implement “de-facto” barriers that were harder to challenge in court.
​The Mechanics of Modern Segregation
​HOAs utilized several sophisticated methods to influence neighborhood demographics without explicitly mentioning race. These strategies included:
• ​Prospective Resident Interviews: Requiring face-to-face meetings before approval.
• ​Financial Gatekeeping: Implementing high minimum credit scores and mandatory background checks.
• ​Private Zoning: Enforcing expensive maintenance and design codes that made living in the community prohibitively costly for lower-income families.
​As Jonathan Rothwell, author of A Republic of Equals, noted, these deed restrictions and private rules essentially compelled owners to avoid selling to Black buyers. This system effectively blocked wealth-generating opportunities and upward mobility for millions of Black and lower-income families.
​The Impact on Today’s Housing Market
​The legacy of these early practices is still visible in current statistics. According to 2019 research published by Science Direct, approximately 60% of new single-family homes and 80% of houses in new subdivisions are governed by an HOA.
​Modern data consistently reveals a stark demographic divide. Neighborhoods managed by HOAs are significantly more likely to have high concentrations of white, Asian, and wealthy residents. Conversely, these areas have consistently lower numbers of Black residents compared to neighborhoods without HOA governance. By understanding this history, we can better address the ongoing challenges of economic and racial segregation in the modern housing market.
