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The Pros And Cons Of Residential Real Estate Steering

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It is not shocking to anyone who has been to a major metropolitan area that America's cities tend to be organized by race. Despite the recently increased diversification across the country, America’s neighborhoods remain segregated along racial and ethnic lines. Residential segregation between African-Americans and whites persists in metropolitan areas through real estate steering, zoning ordinances, and redlining. Historically, racial steering was virtually required by law and a widespread practice in many cities. Racial real estate steering occurs when home seekers are guided by housing providers to communities where their race is already highly concentrated. Racial minorities are channeled to predominantly non-white neighborhoods, and whites are shown homes primarily in white communities. “Steering on the basis of any of the characteristics defined under the Fair Housing Act is not only unethical, it’s illegal because it …show more content…

Steering occurs when an agent limits the housing options available to a buyer by directing prospective homebuyers interested in equivalent properties to different neighborhoods or communities or even different parts of the same development according to the buyer’s race or other characteristics protected under the Fair Housing Act” (DeSantics). Steering contributes directly to the segregated housing patterns that have long persisted in urban communities. Steering is the most violated law in real estate. Since the Fair Housing Act of 1968, many realtors have continued to use steering. Steering is not the only force at action, zoning ordinances contribute even more to the segregation of african americans. Zoning ordinances specify whether zones can be used for building residential or commercial buildings, these building codes in cities limit housing

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