Steering

Definition

Steering is a practice in real estate where agents guide potential homebuyers or renters toward specific neighborhoods based on their race, ethnicity, or other protected characteristics. This practice can lead to segregation and unequal access to housing, reinforcing discriminatory patterns in the housing market and limiting opportunities for affected individuals.

5 Must Know Facts For Your Next Test

1. Steering is often subtle and can occur through seemingly benign recommendations made by real estate agents.
2. Victims of steering may end up living in neighborhoods with fewer resources and lower property values compared to those recommended for other racial or ethnic groups.
3. Steering violates the Fair Housing Act, which seeks to promote equal housing opportunities regardless of an individual's background.
4. The practice of steering can perpetuate systemic racism by limiting access to diverse communities and economic opportunities.
5. Education and training for real estate professionals are crucial in combatting steering and promoting fair housing practices.

Review Questions

• How does steering contribute to patterns of segregation in housing markets?
  • Steering contributes to segregation by directing individuals towards specific neighborhoods based on their race or ethnicity, effectively limiting their housing options. When real estate agents make biased recommendations, it reinforces existing social divides and prevents affected individuals from accessing more diverse or resource-rich areas. This results in homogenous communities that lack the benefits of varied cultural interactions and economic opportunities.
• Evaluate the impact of the Fair Housing Act on practices like steering within the housing market.
  • The Fair Housing Act has played a significant role in reducing discriminatory practices like steering by making such actions illegal. By providing a legal framework for individuals to challenge unfair treatment in housing, the Act promotes accountability among real estate professionals. However, despite its enactment, steering still occurs, indicating that enforcement and education are necessary to truly eliminate these practices from the housing market.
• Assess the long-term implications of steering on affected communities and broader society.
  • The long-term implications of steering can be profound for both affected communities and broader society. Steering often leads to entrenched segregation, which limits access to quality education, healthcare, and employment opportunities for marginalized groups. Over time, this can result in generational poverty and social isolation. Additionally, it perpetuates systemic inequalities that hinder societal progress as diverse voices and talents are excluded from contributing to the community's growth and development.

Related terms

Redlining:

A discriminatory practice where banks and insurers refuse or limit loans and insurance to residents in certain areas based on racial or ethnic composition.

Fair Housing Act:

A federal law enacted in 1968 aimed at eliminating discrimination in housing sales, rentals, and financing based on race, color, religion, sex, national origin, familial status, or disability.

Segregation: The enforced separation of different racial groups in a community, often manifesting in housing patterns that restrict access to resources and opportunities.