Introduction
Steering in real estate refers to the practice of guiding or influencing potential buyers or tenants towards or away from certain neighborhoods or properties based on their race, ethnicity, religion, or other protected characteristics. It is a discriminatory practice that violates fair housing laws and regulations. This article will delve deeper into the concept of steering in real estate, exploring its implications, legal framework, and ways to combat it.
Understanding Steering in Real Estate
Definition: Steering is the act of directing or channeling potential buyers or tenants towards or away from specific neighborhoods or properties based on their protected characteristics. It involves providing different levels of service, information, or opportunities to individuals based on their race, ethnicity, religion, or other protected attributes.
Implications: Steering perpetuates housing segregation and denies individuals equal access to housing opportunities. By limiting their options or directing them towards certain areas, it restricts their ability to choose where they want to live or invest in real estate. This can lead to unequal access to amenities, educational opportunities, and economic resources.
Legal Framework: Steering is prohibited under the Fair Housing Act (FHA) in the United States. The FHA prohibits discrimination in the sale, rental, or financing of housing based on race, color, religion, sex, national origin, familial status, or disability. Real estate professionals, including agents, brokers, and landlords, are required to adhere to fair housing laws and provide equal housing opportunities to all individuals.
Types of Steering
Steering Based on Race or Ethnicity: This form of steering involves guiding or discouraging individuals from specific neighborhoods or properties based on their racial or ethnic background. Real estate professionals may provide biased information, highlight stereotypes, or use coded language to influence the decisions of potential buyers or tenants.
Steering Based on Religion: Steering based on religion occurs when individuals are directed towards or away from certain neighborhoods or properties based on their religious beliefs. This can involve providing information about the religious composition of an area or suggesting alternative locations based on religious preferences.
Steering Based on Familial Status: Families with children may be steered towards certain neighborhoods or properties with a higher concentration of families or children. Conversely, individuals without children may be directed away from such areas. This type of steering is prohibited under the FHA, as it discriminates against families with children.
Combating Steering
Education and Awareness: Raising awareness about fair housing laws and the consequences of steering is crucial in combating this discriminatory practice. Real estate professionals should be educated about fair housing regulations and the importance of providing equal housing opportunities to all individuals.
Enforcement and Penalties: Government agencies responsible for enforcing fair housing laws should actively investigate and prosecute cases of steering. Real estate professionals found guilty of steering can face legal consequences, including fines, suspension, or revocation of their licenses.
Testing and Auditing: Conducting fair housing tests and audits can help identify instances of steering. These tests involve sending individuals with similar profiles but different protected characteristics to real estate professionals to assess if differential treatment occurs. Testing can provide evidence of steering practices and support legal actions against violators.
Conclusion
Steering in real estate is a discriminatory practice that involves guiding or influencing individuals towards or away from certain neighborhoods or properties based on their protected characteristics. It perpetuates housing segregation and denies equal access to housing opportunities. Understanding the legal framework, types of steering, and strategies to combat it is essential in promoting fair housing and creating inclusive communities.
References
– U.S. Department of Housing and Urban Development: hud.gov
– National Association of Realtors: nar.realtor
– Fair Housing Act: law.cornell.edu
