The South Side, and Hyde Park and Kenwood in particular, in past years has been the choice residential section of Chicago, the show place of Chicago. Grand Boulevard is the most magnificent street in the world, the finest boulevard of our wonderful boulevard system. I know that for many, many years, in this town, it was the ambition of people living in other parts of the city to arrange matters so that they could have their homes on the South Side in the place where you now live.
We have seen the rapid deterioration. In the council and in the committees we have decided that we must do something. The law has some very definite limitations written into our constitution and statutes. It cannot afford any relief. You yourselves must resurrect the South Side.
As one instance of what we attempted to do in the way of assuring to the people who reside here that the South Side can and will continue to be the great place we live in, we passed the Lake Front Ordinance. You people probably never realized what a wonderful thing that will be for the South Side. It will take in the lake front from Twelfth Street south to Fifty-first; it will affect the very choicest residential district in Chicago, the territory between Thirty-ninth Street and Forty-seventh Street—in this portion of the ward where we now are, something like $125,000,000 will be expended in reclaiming the lake front for you people, you men and women who must stand together to save your homes, see that your homes are kept as fine places to live in, that your neighbors are kept the most desirable neighbors in the city of Chicago, so that you may enjoy the benefit of that wonderful improvement that is to come. Think of that tremendous stretch, from Thirty-ninth to Forty-seventh, of bathing facilities, the finest in the world. More than a year and a half ago an estimate was made of the loss in property values in the Oakland district, north of Forty-third Street, and that was estimated to be $100,000,000. Now it is not only the loss of money that interests us. It means not only that somebody has lost a certain amount of wealth, but it means that somebody has lost comfort in living; someone has lost joy in his home; someone has lost the opportunity to give his children the environment that he wanted to give.
A survey made by the Hyde Park Property Owners' Association in 1920 showed that there were then 3,300 property owners in the area bounded by Thirty-ninth and Fifty-fifth streets, Michigan Avenue and Cottage Grove Avenue, and that of this number 1,000 were Negroes. Then began the attempts to move Negroes[26] back into "their own neighborhood."
Many of the Negroes who moved into this area had substantial resources enabling them either to buy property outright or so to arrange for payments through instalments and mortgages as to render themselves secure against efforts to remove them. But in so doing they further complicated the status of the neighborhood. Few white persons recognize the marked differences among Negroes, so that in purely commercial dealings they are not as careful in selecting Negro tenants as they would be among whites. As a result some Negroes who secured property there proved damaging to property values, just as would persons of a similar type from any other race.
Many of the houses for sale or rent were not suited to the incomes of ordinary wage-earners. White persons whose incomes were sufficient to pay the rental for such large houses preferred a different sort of house or neighborhood; and whites of smaller incomes could find more suitable houses elsewhere; while Negroes, hard pressed for houses, rented them, and took lodgers to fill them and help pay the rent.
The exclusive occupancy of a block by Negroes is usually followed by less care of streets and alleys. This neglect is general between Twenty-second and Thirty-ninth streets and is beginning to appear in the territory between Thirty-ninth and Forty-third streets where recently blocks have been "turned over" to Negroes. Community associations are being formed in some of these areas to protest against this laxity, and stimulate neighborhood interest in neat premises.
Appreciation of property.—When values fall extremely due to a selling panic among white owners, it is often followed by a decided recovery as the Negro demand grows. Such a new market among Negroes, however, seems never to have been strong enough to send prices for residence purposes back to original levels. But many instances have shown that prices rarely stay at the low "panic" level and frequently rebound to a level much above that at which panic sales were made. Mr. Gates, a prominent South Side real estate dealer, said: "If a Negro family locates in a street where the population is all white, values are cut in two, but this would not be likely to occur if a large number of Negroes were ready and willing to buy adjacent property at established prices. Supply and demand would rule in such a market." Other real estate dealers expressed the opinion that "if the white owners were not over-anxious to sell when the Negro 'invasion' begins, they might later on obtain as much or more for their property than they could have obtained before the advent of the Negroes."
In numerous cases Negroes created a market for property when there was none. A prominent white business man long resident on the South Side told of a row of houses on South Park Avenue and Grand Boulevard that were vacant for years until sold or rented to Negroes: they could not be sold at all until they took on a value because Negroes were ready to buy them.
A prominent Negro physician bought a piece of property in an exclusive white Hyde Park neighborhood. He lived there seven years and then sold the property at an advance, and, to his knowledge, there had been no depreciation in adjacent property.