The nation is making real progress in combating housing market discrimination. New estimates from the U.S. Department of Housing and Urban Development (HUD), based on Urban Institute research, indicate that while discrimination persists against African Americans and Hispanics searching for homes in major metropolitan areas, its incidence has generally declined since 1989.

When African Americans and Hispanics visit real estate or rental offices to inquire about the availability of advertised homes and apartments, they face a significant risk of receiving less information and less favorable treatment than comparable white customers. Specifically, compared with their non-minority counterparts:

· Black renters receive consistently unfavorable treatment in 21.6 percent of their inquiries, down 4.8 percentage points since 1989.

· Hispanic renters receive consistently unfavorable treatment in 25.7 percent of their inquiries, essentially the same as in 1989.

· Black homebuyers receive consistently unfavorable treatment in 17.0 percent of their inquiries, down 12.0 percentage points since 1989.

· Hispanic homebuyers receive consistently unfavorable treatment in 19.7 percent of their inquiries, down 7.1 percentage points since 1989.

Despite signs of progress for three out of the four groups studied, significant discrimination remains, raising the cost of housing searches for African Americans and Hispanics, creating barriers to homeownership and housing choice, and helping perpetuate racial and ethnic segregation.

The latest discrimination estimates are based on 4,600 paired tests, conducted in 23 metropolitan areas during the summer and fall of 2000. In a paired test, two individuals-one minority and the other white-pose as otherwise identical home seekers, and visit real estate or rental agents to inquire about the availability of advertised housing units. This methodology provides direct evidence of minorities and whites being treated differently when they seek housing.

This is the third national paired-testing study sponsored by HUD to measure patterns of racial and ethnic discrimination in urban housing markets. Its predecessors, 1977's "Housing Market Practices Study" and 1989's "Housing Discrimination Study," found significant levels of discrimination in the rental and sales markets and no evidence that the likelihood of discrimination changed during the 1980s.

Metropolitan Rental Markets.

African Americans still face discrimination when they search for rental housing in metropolitan markets nationwide. Whites were consistently favored over blacks in 21.6 percent of tests. In particular, whites were more likely to receive information about available housing units, and had more opportunities to inspect available units. Discrimination against African American renters declined between 1989 and 2000, but was not eliminated. The overall incidence of consistent white-favored treatment dropped by 4.8 percentage points, from 26.4 percent in 1989 to 21.6 percent in 2000.

Hispanic renters nationwide also face significant levels of discrimination. Non-Hispanic whites were consistently favored in 25.7 percent of tests. Specifically, non-Hispanic white renters were more likely to receive information about available housing and to inspect available units than were Hispanic renters. Discrimination against Hispanic renters appears to have remained essentially unchanged since 1989.

Although the incidence of adverse treatment dropped for some forms of agent behavior, the overall incidence of consistent adverse treatment was not significantly different in 1989 than in 2000. Hispanic renters now appear to face a higher incidence of discrimination than African American renters.

Patterns of differential treatment for both African American and Hispanic renters vary across metropolitan areas. The incidence of consistent adverse treatment against black renters significantly exceeds the national average in Atlanta, while Chicago and Detroit rental markets had rates below the national average. None of the metropolitan-level estimates of consistent adverse treatment for Hispanic renters significantly exceeded the national average, but in Denver, the incidence of consistent adverse treatment against Hispanics was significantly less than the national average.

Metropolitan Sales Markets.

African American homebuyers-like renters-continue to face discrimination in metropolitan housing markets nationwide. White homebuyers were consistently favored over blacks in 17.0 percent of tests. Specifically, white homebuyers were more likely to be able to inspect available homes and to be shown homes in more predominantly white neighborhoods than comparable blacks.

Whites also received more information and assistance with financing as well as more encouragement than comparable black homebuyers. Discrimination against African American homebuyers declined quite substantially between 1989 and 2000, but was not eliminated. The overall incidence of consistent white-favored treatment dropped by 12.0 percentage points, from 29.0 percent in 1989 to 17.0 percent in 2000. However, geographic steering rose, suggesting that whites and blacks are increasingly likely to be recommended and shown homes in different neighborhoods.

Hispanic homebuyers also face significant levels of discrimination. Non-Hispanic whites were consistently favored in 19.7 percent of tests. In particular, non-Hispanic whites were more likely to receive information and assistance with financing, and to be shown homes in non-Hispanic neighborhoods than comparable Hispanic homebuyers. Discrimination against Hispanic homebuyers declined since 1989. Specifically, the overall consistency measure dropped by 7.1 percentage points-from 26.8 percent in 1989 to 19.7 percent in 2000.

Patterns of differential treatment for both African American and Hispanic homebuyers vary across metropolitan areas. Metro areas where the incidence of consistent white-favored treatment in the sales market significantly exceeds the national average include Birmingham, and Austin, while white-favored treatment falls below average in the sales market of Atlanta and Macon. Consistent adverse treatment of Hispanic homebuyers significantly exceeded the national average in Austin and New York, and fell significantly below the national average in Pueblo and Tucson.

Tired of the same problems and want a solution?....
Stop trying to live where whitey lives and take pride in your hood.

Discrimination in Metropolitan Housing Markets
Published: November 07, 2002
Source from: http://www.urban.org/url.cfm?ID=1000261
© 2003 by AfroStaff