Steering

Overview

Steering involves the act of influencing or restricting the housing choices of individuals or families in a discriminatory manner, particularly on the basis of race, ethnicity, religion, sex, familial status, or national origin. This practice is prohibited under the Federal Fair Housing Act as it perpetuates segregation and limits fair access to housing opportunities.

Examples

Racial Steering: A real estate agent shows properties in predominantly white neighborhoods to white clients while directing clients of other races to racially diverse or predominantly minority neighborhoods.
Ethnic Steering: A rental agent only shows homes on one side of town to a family from a particular ethnic background, disregarding their expressed interest in properties elsewhere.
Steering based on familial status: An agent guides families with children to certain schools neighborhoods and away from others, citing ‘better’ schools as the reason.

Frequently Asked Questions (FAQs)

What is the Federal Fair Housing Act?

The Federal Fair Housing Act is a U.S. law enacted as part of the Civil Rights Act of 1968, prohibiting discrimination in housing based on race, color, religion, sex, familial status, or national origin.

How is steering detected in real estate transactions?

Steering can be detected through complaints by affected individuals, investigation by fair housing organizations, and testing programs where individuals of different protected classes are sent to inquire about housing with similar profiles to detect discriminatory practices.

What are the consequences for engaging in steering?

Real estate professionals found guilty of steering can face severe penalties, including fines, suspension or revocation of real estate licenses, and legal suits for violation of federal laws.

Can steering happen with online real estate listings?

Yes, steering can also occur online, such as when targeted advertisements or search results only show certain groups of potential buyers or renters homes in specific areas while excluding them from others.

How can real estate professionals avoid steering?

Real estate professionals should offer housing options based solely on clients’ needs and preferences, avoid making assumptions about preferences based on protected characteristics, and stay educated on fair housing laws and practices.

Discrimination: The unjust or prejudicial treatment of individuals based on certain characteristics such as race, color, religion, sex, familial status, national origin, or disability.
Federal Fair Housing Law: A set of laws designed to prevent discrimination in housing-related transactions and ensure equal housing opportunities for all.
Redlining: The discriminatory practice where services (like banking or insurance) are denied to residents of certain areas based on racial or ethnic composition.
Blockbusting: A practice in which real estate agents induce homeowners to sell by suggesting that demographic changes in the neighborhood will decrease property values.
Affirmative Marketing: Policies and practices designed to conduct marketing and outreach to make all groups aware of available housing opportunities and offer them without discrimination.

Online Resources

References

Title VIII of the Civil Rights Act of 1968 (Fair Housing Act)
U.S. Department of Housing and Urban Development (HUD) - Office of Fair Housing and Equal Opportunity
National Association of Realtors - Fair Housing Resources

Suggested Books for Further Studies

“The Color of Law: A Forgotten History of How Our Government Segregated America” by Richard Rothstein
“The Fair Housing Act after Fifty Years: Continuing the Mission to Eliminate Housing Discrimination and Segregation” by Scholars at the University of Pennsylvania, edited by Vincent J. Reina.
“Evicted: Poverty and Profit in the American City” by Matthew Desmond
“Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership” by Keeanga-Yamahtta Taylor

Real Estate Basics: Steering Fundamentals Quiz

### What is steering in real estate? - [ ] A method for finding prime properties. - [x] An illegal practice of showing or guiding clients to or away from certain neighborhoods. - [ ] An optimal route for house showings. - [ ] Informally advising clients about school districts. > **Explanation:** Steering is an illegal practice of guiding, directing, or otherwise influencing potential homebuyers or renters towards or away from certain neighborhoods based on discriminatory factors. ### Under which act is steering explicitly prohibited? - [ ] The Civil Rights Voting Act. - [ ] The Personal Housing Act. - [ ] The Equal Education Act. - [x] The Federal Fair Housing Act. > **Explanation:** Steering is explicitly prohibited under the Federal Fair Housing Act, which is part of the Civil Rights Act of 1968. ### Which of the following could be considered an example of steering? - [ ] Recommending homes based on proximity to a client’s workplace. - [ ] Providing real-time market trends to help clients decide. - [x] Showing homes in certain neighborhoods based on the client's race. - [ ] Assisting clients with mortgage loan information. > **Explanation:** Showing homes in certain neighborhoods based on a client’s race is an example of steering and is illegal as it constitutes discrimination. ### What can result from a real estate professional being found guilty of steering? - [x] Loss of license and legal penalties. - [ ] A warning letter. - [ ] Requirement to attend a training seminar. - [ ] Temporary suspension from practice. > **Explanation:** Real estate professionals found guilty of steering can face severe consequences such as license revocation, fines, and other legal penalties. ### Steering perpetuates which of the following issues? - [ ] Economic growth - [x] Segregation - [ ] Property appreciation - [ ] Industrial development > **Explanation:** Steering perpetuates segregation by maintaining or reinforcing divisions within communities based on discriminated protected characteristics. ### Who can detect steering practices? - [x] Fair housing organizations, affected individuals, and testing programs. - [ ] Property developers. - [ ] Urban planners. - [ ] Local businesses. > **Explanation:** Fair housing organizations, affected individuals, and investigative testing programs are all involved in detecting and curbing steering practices. ### Is steering legal in certain circumstances? - [ ] Yes, if it’s to help with school districts. - [ ] Yes, but only online. - [ ] Yes, under specific regulations. - [x] No, it is illegal under all circumstances. > **Explanation:** Steering is illegal under all circumstances according to the Federal Fair Housing Act and other related regulations. ### Steering usually involves discrimination based on which characteristics? - [ ] Professional status - [ ] Financial equity - [ ] Home style preferences - [x] Race, ethnicity, religion, sex, familial status, national origin. > **Explanation:** Steering usually involves discrimination based on characteristics such as race, ethnicity, religion, sex, familial status, or national origin. ### Why should real estate professionals stay educated about fair housing laws? - [ ] To offer discounts to preferred clients. - [ ] To network with high-profile clients. - [x] To ensure compliance with laws and ethically serve all clients. - [ ] To increase market share. > **Explanation:** Real estate professionals must stay educated about fair housing laws to ensure compliance, serve all clients ethically, and avoid illegal practices such as steering. ### Can steering have effects beyond individual transactions? - [x] Yes, it can have long-term impacts on community demographics and housing equity. - [ ] No, it only affects particular transactions. - [ ] It only affects mortgage interest rates. - [ ] It determines property insurance costs. > **Explanation:** Steering can have significant long-term impacts on community demographics, perpetuating inequality and affecting access to housing opportunities.