Contract Buying Strips Black Chicago Homeowners of Wealth

In Chicago through the 1950s, real estate speculators use 'contract buying' to exploit Black families barred from conventional mortgages. A speculator buys a home from a white owner, then resells it to a Black family at 100 percent markup on a land installment contract. The buyer makes monthly payments but receives no equity or deed until the final payment — decades away. Missing a single payment means eviction with no refund. Researchers at Duke University estimate Chicago's contract buying stripped Black families of $3.2-$4 billion in wealth (2019 dollars) between 1950 and 1970.