Steering: Illegal Practice of Limiting the Housing Shown to a Certain Ethnic Group

Steering is an illegal practice in real estate wherein real estate agents guide prospective home buyers towards or away from certain neighborhoods based on their ethnicity, race, or other discriminatory factors.

Steering is an unlawful and unethical practice in real estate where real estate agents or brokers guide prospective home-buyers towards or away from certain neighborhoods based on their race, ethnicity, religion, or other discriminatory factors, often leading to segregation and unequal housing opportunities.

Definition and Legal Context

Steering is defined under the Fair Housing Act of 1968 in the United States, as well as similar laws in other jurisdictions, as a practice that discriminates against buyers or renters. The Fair Housing Act prohibits discrimination based on:

1. Race
2. Color
3. National origin
4. Religion
5. Sex
6. Familial status
7. Disability

Mechanisms of Steering

Direct Steering

Direct steering occurs when an agent explicitly suggests or discourages certain neighborhoods based on the potential buyer’s demographic characteristics.

Subtle Steering

In this form, agents might use more vague or coded language, such as emphasizing the “safety” or “neighborhood preferences” while subtly guiding the client based on discriminatory motives.

Historical Context

Steering gained prominence in the mid-20th century as suburbanization grew. Real estate agents often perpetuated racial segregation by directing ethnic minorities away from predominantly white neighborhoods. Supreme Court cases, such as Jones v. Mayer Co. (1968), reinforced the illegality of such practices.

Applicability and Modern-Day Implications

Ethical Considerations

Steering undermines the principles of equality and fair housing. Ethical real estate practice requires agents to provide the same information and opportunities to all clients, regardless of background.

Legal Consequences

Real estate agents found guilty of steering can face serious penalties including fines, revocation of license, and civil lawsuits. Regulatory bodies like the Department of Housing and Urban Development (HUD) enforce these regulations through periodic audits and investigations.

Examples of Steering

• An agent suggesting a minority family look in a specific area while withholding listings in predominantly white neighborhoods.
• An agent describing certain neighborhoods as “not for families like yours” to discourage interest.

Comparisons and Related Terms

Blockbusting

While steering involves directing buyers, blockbusting refers to the practice of inducing homeowners to sell their property cheaply by frightening them with the prospect of demographic changes to their neighborhood.

Redlining

An institutional form of discrimination where banks and lenders refuse to offer mortgages or offer worse rates for properties in certain neighborhoods based on residents’ racial or ethnic composition.

FAQs

How can consumers identify and report steering?

Consumers can report suspected steering to HUD or local fair housing organizations. Signs include agents selectively providing neighborhood information or pushing certain areas without asking consumer preferences.

What should I do if I believe I am a victim of steering?

If you suspect steering, document all communications with the real estate agent, including emails and messages, and contact a fair housing organization or an attorney to discuss your case.

Summary

Steering is an illegal and unethical practice that perpetuates housing discrimination and segregation. Understanding its mechanisms, legal implications, and how to address it can help to promote fair housing practices.

References

1. U.S. Department of Housing and Urban Development (HUD)
2. The Fair Housing Act of 1968
3. Supreme Court Case: Jones v. Mayer Co. (1968)