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Unsafe rental units are disproportionately located in communities of color, resulting in numerous detrimental effects for residents’ health and socioeconomic well-being. Yet, scholars disagree regarding the mechanisms driving this phenomenon. Exogenous capitalism theories emphasize socioeconomic factors while setter-colonial racial capitalism theories emphasize the racist policies and practices that incentivize unequal investment and maintenance. We empirically adjudicate between these mechanisms by merging restricted-access versions of the American Housing Survey, the Rental Housing Finance Survey, and the American Community Survey at a Census Restricted Data Center. Our findings demonstrate neighborhood White proportion is a key mechanism shaping the condition of rental units even when controlling for neighborhood socioeconomic status, property features, and renter demographics. We argue these results support settler-colonial racial capitalism theories and discuss the implications of these findings for future research and housing policy.

Displaced and unsafe: The legacy of settler-colonial racial capitalism in the U.S. rental market