Steering is a discriminatory and illegal practice in the real estate industry. It occurs when real estate agents or brokers influence the choices of prospective home buyers or renters to direct them into or away from specific neighborhoods based on racial or ethnic considerations. This practice preserves patterns of segregation and contravenes fair housing laws in many countries, including the United States.
Examples
- Refusing to Show Properties: A real estate agent may show minority buyers homes only in predominantly minority neighborhoods, regardless of the buyer’s interest in other areas.
- Selective Information: An agent provides detailed information about some neighborhoods but gives limited information or misinformation about others, in an effort to influence a buyer’s choice based on race or ethnicity.
- Directional Guidance: When a buyer of a particular race shows interest in an area predominantly inhabited by another race, the agent may subtly discourage them by overstating negatives like crime rates or school quality.
Frequently Asked Questions (FAQs)
Why is steering illegal?
Steering is illegal because it violates fair housing laws designed to prevent discrimination and ensure equal housing opportunities for all individuals, regardless of their race, ethnicity, or other protected characteristics.
What laws prohibit steering?
In the United States, steering is prohibited under the Fair Housing Act of 1968, which outlaws discrimination in housing sales, rentals, and financing based on race, color, national origin, religion, sex, familial status, and disability.
How can steering affect communities?
Steering can perpetuate segregated living patterns, limit diversity, and restrict economic opportunities for minority groups. It undermines efforts to build inclusive communities and exacerbates social inequalities.
How can victims of steering take action?
Victims can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or their local fair housing agency. They may also seek legal counsel to explore further actions against discriminatory real estate practices.
Can real estate professionals be penalized for steering?
Yes, real estate professionals found guilty of steering can face severe penalties, including fines, license suspension or revocation, and civil lawsuits. These actions are intended to deter discriminatory practices and uphold fair housing standards.
Related Terms
1. Redlining: The discriminatory practice where services are withheld or made more difficult to obtain in certain neighborhoods based on racial or ethnic composition. 2. Blockbusting: The practice of convincing homeowners to sell their properties at low prices by instilling fear that racial minorities will soon be moving into the neighborhood. 3. Fair Housing Act: A federal act in the United States designed to eliminate discrimination in the housing market. 4. Ethnic Segregation: The separation of people into different neighborhoods based on their ethnicity or race.
Online Resources
- U.S. Department of Housing and Urban Development (HUD)
- National Fair Housing Alliance
- Fair Housing Justice Center
Suggested Books for Further Studies
- “The Color of Law: A Forgotten History of How Our Government Segregated America” by Richard Rothstein - This book recounts how federal, state, and local policies systematically imposed residential segregation.
- “The Fair Housing Act” by Editors of Nolo - A practical guide to understanding rights and protecting against housing discrimination.
- “American Apartheid: Segregation and the Making of the Underclass” by Douglas Massey and Nancy Denton - This book explores the consequences of residential segregation in America.
Fundamentals of Steering: Real Estate Basics Quiz
Thank you for exploring the detailed aspects of steering in the real estate sector with us. Continue striving for knowledge and equality in your housing endeavors!