The Negro in Chicago: A Study of Race Relations and a Race Riot

by Chicago Commission on Race Relations

Sometimes social or sentimental values are involved in the depreciation brought about when a new race or nationality breaks down the exclusiveness of a residence district. After the Exposition, for example, when wealthy residents of Michigan Avenue, and Grand and Drexel boulevards deserted their houses for more fashionable locations, many of them were bought by Jews. This operated to depreciate adjacent property in the opinion of those who disliked Jews as neighbors.

How the changes take place was well described by an experienced real estate man: The original families have divided up and moved away; sons and daughters have married; the servant problem has become acute, making it difficult to maintain large houses; thus apartment houses have become popular; houses are older and deteriorated, apartments are new and modern. In 1915 when the number of apartments for rent was in excess of the demand, a tenant would spend $25 or $30 in order to move into an apartment across the street merely because it happened to be fitted with glass door knobs; a high-class residence at Forrestville Avenue and Forty-fifth Street was sold twenty years ago for $12,000; yet he told the purchasers ten years ago that the property would not sell for more than $4,000 to $6,000; and that was before Negroes had moved into the neighborhood. Apartments in that vicinity still command a price approaching their original cost of building, because the demand for them is stronger than for houses.

This real estate man made the broad statement that the depreciation has taken effect, in the majority of cases, before a Negro family has moved into a neighborhood. There is depreciation, he thought, due to prejudice, when a Negro family moves into a good neighborhood that has been exclusively white, but that there are very few such instances for the reason that Negroes prefer to live where they are welcome, where there is no antagonism. With regard to the district between Thirty-ninth and Fifty-fifth streets, State Street and Cottage Grove Avenue, he stated that the entrance of the Negro had not appreciably affected values.

Another real estate dealer, experienced in South Side property and in selling to Negroes, expressed similar opinions. The greatest depreciation, he felt, was in the expensive residences, and he doubted whether property as a whole in the square mile centered at State and Thirty-fifth streets had been depreciated much if at all.

There was agreement among the authorities consulted that in an exclusive neighborhood of wealthy residents marked depreciation in large residences has taken place, followed by the introduction of apartment buildings. One of the men who had earnestly opposed Negro entrance into the Grand Boulevard district recalled when valuations on Grand and Drexel boulevards were from $400 to $600 a front foot; then they fell to $125 or $150 a foot; and then gradually climbed back to $175 or $200 a foot on account of the introduction of apartment buildings.

Such variations in value are the usual accompaniment of unguided growth in a large city. This unguided development brought depreciation, which was manifest before Negroes began to make their appearance in the area.

The spread of clandestine prostitution, discussed in connection with the area north of Thirty-ninth Street, did not stop at Thirty-ninth Street. As the environment maps indicate,[25] there was a noticeable increase from 1916 to 1918 in the number of houses or flats used by prostitutes in the area south of Thirty-ninth Street. These changes occurred before the spread of the Negro population reached the neighborhood. Two houses, for example, at 4404 and 4406 Grand Boulevard, bought by a Negro woman and bombed four times after she moved in, had been occupied by prostitutes just prior to her purchase.

The coming of Negroes.—In 1916 hundreds of buildings in the Hyde Park area stood vacant and had been so for some time. Owners and real estate men were offering large concessions in the effort to get tenants. Values had fallen greatly. A prominent real estate man closely in touch with the neighborhood estimated that 25 per cent of the buildings there were vacant, and that there was little prospect of renting or selling them. Coincident with this oversupply in Hyde Park was an acute demand among Negroes for houses, intensified by the sudden addition of about 50,000 migrants. Many of them had sold their property in the South and brought the money with them. Hyde Park landlords were willing to sell or rent to them rather than lose their property entirely. Many Negroes, however, instead of renting, purchased the properties because of the exceptional terms offered.

This continued for about two years, when a demand for houses again arose among the white population. There was inactivity in building throughout the war period. Chicago was sharing in the housing shortage which affected the whole country, which was estimated in the early part of 1921 at 50,000 houses. As the demand of whites for housing became acute, Hyde Park owners began to feel that their property was at a disadvantage due to the presence of Negroes.

Plans for beautifying the lake front and improving Hyde Park were emphasized as a reason for holding on to property there. Alderman Schwartz, in addressing a meeting of the Grand Boulevard district of the Kenwood and Hyde Park Property Owners' Association, said: