The Federal Impact on Early Postwar Suburbanization

Researchers agree that, in Canada and the United States, federal policy with respect to mortgage finance encouraged suburbanization in the early postwar period. However, direct evidence has been lacking. Unique mortgage file data for 1951 for two Canadian cities, Hamilton, Ontario, and Vancouver, British Columbia, make it possible to assess this claim, and related claims. They show that the impact of federal mortgage assistance was similar in direction in both cities, but much more striking in Hamilton: federal involvement encouraged suburbanization, reinforced existing broad patterns in the social geography of the city, and increased the amount of income segregation at the scale of specific neighborhoods and suburban subdivisions. The broad generalizations that previous researchers have made about the impact of federal mortgage policy are confirmed, but the magnitude of that impact could vary enormously and cannot be assumed in particular cases.