NAR Report Shows Types of Discrimination Experienced by Homebuyers

Steering was the more common type of discrimination experienced in real estate transactions, according to the National Association of Realtors®’ 2024 Snapshot of Race and Home Buying in America report released earlier this year.

Thirty-nine percent of Black homebuyers said they witnessed or experienced steering toward or away from specific neighborhoods. Thirty-seven percent of Hispanic homebuyers and 31% of Asian buyers experienced steering.

Other types of discrimination experienced were:

• More strict requirements for themselves
• Type of loan product offered
• Purchase offer denied for possibly discriminatory reasons
• Refusal of homeowner or agent to show a property to particular classes.

Fifteen percent of both Black and Hispanic homebuyers experienced or witnessed discrimination in the appraisal of their homes. Hispanic and Asian homebuyers were more likely to report witnessing or experiencing discrimination with the refusal of the homeowner or agent to show a property to particular classes.

“What we see in this portion of our research is that everyone has a different experience in the real estate transaction and unfortunately, we are continuing to see discrimination, even with successful buyers,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “This research is actually based on information from successful homebuyers and what they faced. This report doesn’t include folks who felt discrimination through the process and stopped moving forward with their homebuying process.”

Alexia Smokler, NAR director, Fair Housing Policy and Programs, said, “A person’s identity should never be a barrier to accessing a home. Yet, consumers of color continue to report experiencing discrimination in every stage of the real estate transaction. We must remain vigilant to ensure fair treatment of all buyers. That means educating ourselves on how implicit bias can result in steering, being aware of discriminatory behavior by other parties in the transaction and educating our clients about their rights and avenues for redress if they believe they have been discriminated against.”

When recent homebuyers were asked whether they experienced discrimination in a real estate transaction, 7% of Black and 3% of both Asian and Hispanic homebuyers said they experienced discrimination based on race. Forty-eight percent of Black homebuyers, 34% of both Asian and Hispanic homebuyers and 27% of white homebuyers did not experience discrimination in their real estate transaction but believe that it exists.

When asked about their neighborhoods, 64% of Asian homebuyers said that the majority of their neighborhood is not the same race as them. Sixty-two percent of Black homebuyers and 55% of Hispanic homebuyers said the same. This is compared to 16% of white homebuyers who said the majority of their neighborhood is not the same race as them.