"For Sale Signs Sprouting Like Dandelions" - Blockbusting in Riverside

Blockbusting in Riverside

In a 1990 interview, a longtime resident of Riverside neighborhood shared "(I) remember the day back in the late '50s when the first black family moved into the neighborhood. The rest of the neighbors got together that night and the next morning there were 'for sale' signs sprouting like dandelions" (Mannheimer, 1998). By 1990 or earlier, the Riverside neighborhood had transitioned from 100% Caucasian to 90% African American and 10% Caucasian (Mannheimer, 1998). What in the world could cause such a rapid demographic change? 

In the last blog post ("Where Waterlines and Redlines Cross"), it was shown that redlining unfairly associated African Americans with depressing property values, and that it locked African Americans in poorly rated neighborhoods into a property-depreciating spiral. Speculators understood this pattern, and used it to drive their own profits. According to a report on Meridian-Kessler area (just north of Riverside)

...Speculators used the threat of racial change to railroad white homeowners into selling their houses at sacrifice prices... 

As soon as the first negro family took up residence in what, until the early 60's, was an all-white enclave of the Near-Northside, speculators saturated the area with solicitations to sell... 'Take our advice" Dewester quoted the speculators as saying "sell your house while it retains some of its value. The influx of negro newcomers is bound to continue. Sooner or later a house in this section will be all but worthless" 

Castellucci 1978

Speculators could then turn around and sell these houses to middle class African American families at full value. There were many documented cases where speculators would pay $7,000 for a house and resell it for $11,000 later that week (Castellucci, 1978). This then perpetuated the cycle - more black families moved into the neighborhood, convincing more white homeowners that their property values were under threat.

The problem is that speculators were so good at fear-mongering that they soon drove out more white neighbors than there was demand for housing. Soon, speculators were forced to sell these houses at the same sacrifice prices that they had forced upon white homeowners in the area (Castellucci, 1978). The vacuum left by this white flight was filled with lower-income, lower educated residents who often were forced to find financing from sources other than mortgage lenders (The Polis Center, n.d.).

The testimony of Riverside's longtime resident is borne out by census data - this cycle of blockbusting had a rapid, dramatic effect on the Riverside neighborhood.

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Housing Trends in Riverside Area
	1950	1960	1970
Total Housing Units	2,109	2,420	2,665
Owner Occupied Units
Caucasian	732 (34%)	530 (21%)	111 (4%)
African American	213 (10%)	974 (40%)	1,324 (49%)
Renter Occupied Unit
Caucasian	59 (3%)	305 (12%)	60 (2%)
African American	250 (11%	485 (20%)	942 (35%)
Population in Riverside
Total Population	6,989	8,203	8,374
Caucasian	5,735 (82%)	2,692 (33%)	387 (5%)
African American	1,254 (18%)	5,503 (67%)	7,972 (95%)

Fig. 1 - Housing Trends in Riverside Area from the Riverside Neighborhood InventoryThis data captures trends in the broader census tract surrounding Riverside, so Figure 1 should be appreciated more for the trends observed than exact numbers. The data validates the three trends discussed above - African American occupants increased drastically from 1950 to 1960, and renter-occupied rates increased as residents were unable to find financing to purchase their home. Lastly, the population switched from 82% Caucasian in 1950 to 5% in 1970.


Data from the same inventory shows that while the 55.4% of the adults in Marion County were high school graduates in 1970, only 22.1% of adults in the Riverside area had received their high school diploma (Department of Metropolitan Development, 1980). Additionally, the 1970 mean income was $8,042 in the Riverside area, while it was $12,264 throughout the county. (Department of Metropolitan Development, 1980).*

Additional sources, like the United Northwest Quality of Life Plan, and the Polis Center's history of the United Northwest area, indicate that the city disinvested in this area once racial demographics and income levels changed sufficiently. The Riverside amusement park closed, the school systems lost funding, and in 2015 even the grocery stores have shut down to create a food desert in Riverside (The Polis Center, 2018; McKinney and Rinehart 2015).

*When reading this information, it's important to keep a communication distinction in mind. These lower incomes and education rates are a result of external policies and disinvestment imposed on the community. This is not a reflection of their deficit. The fact that these numbers are not lower is a testament to the resilience that these residents have shown in spite of having the deck stacked against them by the powers that be. 

Back to Site 0153

Now that a brief history of the obstacles placed in front of this community has been provided, the natural question is "how does this explain that 100+ polluting companies in Site 0153?" This history has provided only half of the story - it has shed light on the situtation of a community that now seeks to overcome the political, environmental, and technical challenges before it. To read the story of the industries that now pollute, come back next week!

Sources Cited (in order of appearance) 

1. Mannheimer, Steve. "Neighborhood builds rock-solid tradition, thanks to design". Indianapolis Star. July 9, 1998.
2. Castellucci, John. “Redlining in Indianapolis”. Indiana University School of Journalism. 1978
3. The Polis Center. (n.d.). UNWA - Narrative History. [online] Available at: http://www.polis.iupui.edu/RUC/Neighborhoods/UNWA/UNWANarrative.htm#5f [Accessed 17 Nov. 2018].
4. Department of Metropolitan Development. Marion County Division of Planning and Zoning. Riverside Neighborhood Data Inventory. Indianapolis, Indiana, 1980. 
5. McKinney, Matt. Rinehart, Jack. "All 5 Double 8 Foods Close After 58 Years due to Declining Value". WRTV6. 2015.

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