The homeownership gap : how the post-world War II GI bill shaped modern day homeownership patterns for black and white Americans

Abstract

Servicemen's Readjustment Act of 1944, commonly known as the GI Bill, was a transformative piece of legislation signed by President Roosevelt intended to help WWII Veterans transition successfully from soldier to citizen. Often dubbed the magic carpet to the middle class, provisions of the bill granted eligible veterans free college tuition, job training and placement, generous unemployment benefits and a low interest, no money down loan for a home or business. The effects of this bill were widespread; it touched eight out of ten men born in the 1920's. Much is known of impact GI Bill benefits had on white veterans, but less is known of how black veterans, who accounted for one in thirteen WWII Veterans, were able to use them. This paper examines barriers black veterans faced to access and use the housing benefit, and examines the possible intergenerational impacts such barriers had on the wealth and homeownership status of African Americans today.