What does redlining refer to in real estate?

Redlining refers to the practice where banks and insurance companies refuse to provide mortgages or insurance to residents in specific neighborhoods, often based on racial or ethnic demographics. This practice was prevalent in the mid-20th century and is named after the red ink used to outline the areas deemed high-risk on maps. It effectively marginalized communities, leading to systemic inequalities in housing and access to home ownership.

This answer is accurate because it highlights the discriminatory nature of the practice, which can have long-lasting effects on communities and their economic opportunities. Understanding redlining is essential in addressing historical injustices in real estate and promoting fair housing practices today.

The other options address different aspects of real estate but do not capture the core concept of redlining. For instance, property appraisal is a systematic method for determining property value, zoning laws pertain to land use regulations, and strategies for increasing property taxes are fiscal policies unrelated to the concept of denying access to home financing based on location.