Racial steering

Racial steering is the practice in the real estate industry where real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. This practice is a form of racial discrimination and is illegal in many countries, including the United States, under the Fair Housing Act of 1968. Racial steering can contribute to the segregation of communities, affect property values, and limit the housing opportunities available to racial and ethnic minorities.

Overview

Racial steering can take various forms, but it generally involves real estate agents making decisions on behalf of clients based on racial considerations. This may include agents showing homes in certain neighborhoods based on the assumption of where they think a person of a particular race would feel more comfortable or belong, or dissuading clients from considering homes in certain areas based on the racial makeup of the neighborhood. Such practices reinforce existing patterns of residential segregation, reduce the diversity of communities, and perpetuate inequalities in housing.

Legal Framework

In the United States, the Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, religion, sex, familial status, national origin, or disability. Racial steering, as a form of discrimination, violates this act. The Act enables individuals who believe they have been victims of racial steering to file complaints with the U.S. Department of Housing and Urban Development (HUD) or to pursue legal action in federal court.

Impact

The impact of racial steering extends beyond the individual level, affecting the demographic composition and economic health of communities. It can lead to segregated neighborhoods, with concentrated areas of poverty and diminished access to quality education, employment opportunities, and other resources. This segregation also affects property values, often depreciating the value of homes in predominantly minority neighborhoods while inflating home values in predominantly white areas.

Combating Racial Steering

Efforts to combat racial steering include stronger enforcement of existing anti-discrimination laws, education for real estate professionals about the legal and ethical obligations, and public awareness campaigns to inform homebuyers of their rights. Additionally, some advocate for policy changes to address the underlying economic and social conditions that contribute to residential segregation.

See Also

• Redlining
• Blockbusting
• Fair Housing Act
• Residential segregation in the United States

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