More than 50 years after the Fair Housing Act banned overt discrimination, the real estate industry is still grappling with the legacy of racial bias. The hard truth is that implicit biases, steering, and even modern forms of segregation persist in subtle (and sometimes not-so-subtle) ways.
As a real estate agent, you occupy a position of great responsibility: you can either contribute to the problem or be a key part of the solution. The good news is, many in our field are eager to do the latter – and with a bit of reflection and education, we absolutely can.
In this post, let’s explore what racial bias looks like in today’s real estate market, why it matters (ethically and financially), and practical steps you can take to ensure you’re providing equitable service to all clients. This isn’t about blame; it’s about awareness and positive action.
By the end, you might even feel inspired to treat this topic as part of your own real estate continuing education journey, continually learning and improving as a professional who stands for fair and equal housing opportunity.
Understanding Implicit Bias in Real Estate
First, it’s worth defining implicit bias. These are the unconscious attitudes or stereotypes that affect our understanding, actions, and decisions. In real estate, an implicit bias might be an automatic assumption you don’t even realize you’re making – for example, assuming a Black family would be more interested in one neighborhood over another, or that an Asian buyer might be concerned about school ratings (hello stereotype!), or that a white buyer might not want to look in a predominantly minority area.
These snap judgments can occur without any malicious intent. In fact, you may genuinely endorse fair housing and equality, yet those ingrained societal biases can subtly influence your behavior.
Why do we need to confront this? Because studies and investigations have shown that even today, clients of different races often get different treatment. One eye-opening investigation by Newsday in 2019 sent trained “testers” (paired individuals of different races posing as homebuyers with similar finances) to meet with real estate agents on Long Island, NY.
The results were stark: there was evidence of unequal treatment about half the time against minority buyers. Specifically, Black testers faced discrimination 49% of the time, Latino testers 39%, and Asian testers 19%, compared to their white counterparts.
White testers were shown 50% more listings on average than equally qualified Black testers. That’s a huge gap in service.
Most of the disparities came not from outright saying “No, I won’t work with you,” but from subtle differences: who got prompt follow-ups, who was steered away from certain communities, who was encouraged enthusiastically vs. who was met with lukewarm responses or extra hurdles.
This is implicit (and sometimes explicit) bias in action. It’s not just Long Island – similar paired-testing studies by the National Fair Housing Alliance in other cities have found high rates of racial steering by agents. Steering is when an agent guides a buyer towards or away from neighborhoods based on race.
For example, showing Black buyers homes only in predominantly Black or mixed neighborhoods, even though they can afford a home in a mostly white area, or conversely telling white buyers about “nicer” (whiter) neighborhoods and not presenting options in diverse communities.
These biases, left unchecked, contribute to “modern segregation.” Our cities and suburbs remain highly segregated by race – not due to laws anymore, but due to socioeconomic factors and yes, lingering discriminatory practices. Half of all Black Americans live in neighborhoods with predominantly Black populations, and similar trends exist for other minorities.
This segregation has far-reaching impacts: disparities in home values, school quality differences, wealth accumulation gaps (since homeownership is a key wealth builder). When agents inadvertently reinforce these patterns, we become part of a cycle that limits equal opportunity.
The first step to breaking it is self-awareness. We all have biases; the goal is to be aware and not let them dictate our actions. Consider taking an implicit bias test (Harvard’s Project Implicit has some) to uncover your own hidden biases. It can be humbling, but useful. Once you know, you can consciously counteract them.
Common Forms of Racial Bias in Real Estate Today
Let’s identify a few ways bias can creep into an agent’s work, even without ill intent:
- “School District” Conversations: How often has a client asked you about schools or “safe neighborhoods”? These can be loaded questions. Some agents, trying to be helpful, might say things like “This area has great schools” or “I wouldn’t send my kids to that school.” The problem: schools and safety are often proxies for race and class. Using schools as a criterion can lead to steering. The NFHA found agents often used school districts to guide white buyers away from areas with more minorities. Instead, provide objective information – refer clients to third-party school rating websites or the school district’s own resources, and let them decide what’s “great.” Avoid injecting your subjective take, which might be colored by bias or hearsay.
- Selective Listings and Tours: You might have a white client who says they want a “good neighborhood.” Without thinking, you draw up listings mostly in predominantly white areas. Or you have a Black client and you automatically include a certain suburb because “I’ve sold to a lot of Black families there, they’ll feel comfortable.” Catch yourself. Are you really using the criteria the client gave (price, house features, commute) or are you adding a layer of what you think they might prefer based on race? The best practice is to offer a variety of choices within the client’s parameters. For instance, if they say $400k, 4 bedrooms, within 30 minutes of downtown, pull listings across various communities that fit – not just the ones you assume are best.
- Different Levels of Enthusiasm or Service: This one is tough to self-observe but crucial. Do you find yourself more eager, chatty, and forthcoming with some clients than others? Maybe you spend extra time explaining the process to one buyer, but with another you’re more curt. It could be cultural comfort levels at play. It’s important to provide the same high level of service to everyone. In the Newsday tests, some agents abruptly cut off communication with minority testers or didn’t offer the same help with mortgage pre-approval, etc., that they gave the white testers. Check yourself: are you giving everyone equal follow-ups, equal effort in finding options, equal patience in answering questions? Professionalism means consistency.
- Assumptions about Financing: Don’t assume someone’s financial qualifications by appearance or name. A well-dressed white couple might get the benefit of the doubt (“They’re probably qualified”), whereas a Hispanic single mom might be asked immediately “Have you been pre-approved for a loan?” in a skeptical tone. Both deserve your help in figuring out finances, but phrasing and assumption matters. Treat all initial inquiries similarly – maybe have a standard set of questions you ask every new client (Are you pre-approved? Do you need lender referrals? etc.) so you’re not going by gut feeling.
- Coded Language: Be wary of phrases like “changing neighborhood,” “pride of ownership,” “exclusive area,” etc. These can signal bias. For instance, saying an area is “changing” or “up and coming” often is code for “more minorities are moving in” or “it’s gentrifying.” Using these in discussions or advertising can be seen as steering or at least raising a red flag. Focus on concrete factors: housing styles, year built, proximity to amenities, actual crime statistics if relevant – not on the people who live there.
- Client Preferences that Are Discriminatory: Sometimes the bias comes from clients. A buyer may say, “I’d like a neighborhood with people like us,” or a seller might ask, “Can we not sell to [a certain group]?” It’s on you to handle this professionally and lawfully. For buyers, remind them you can’t discuss demographics, and pivot to property features. For a seller with a discriminatory request, you must refuse to comply – steering away certain buyers or preferring others is illegal. It could be a teachable moment to explain fair housing laws. If they insist, you should walk away from the listing. Don’t risk your license or ethics.
The Agent’s Role in Creating Equitable Experiences
Now, onto the positive: what can agents do to actively combat bias and foster equality?
1️⃣ Embrace the Equal Service Model
The National Association of REALTORS® developed an “Equal Professional Service Model” which is essentially a system to ensure every customer gets the same quality of service. The core idea is consistency. For example, greet every prospect the same way, ask the same initial questions, offer the same menu of services. Let objective information guide your consultations, not subjective impressions. Offer a broad selection of listings that meet their criteria (varied locations if possible) so the client can choose and “set their own limits”.
For instance, if a buyer initially says they want Neighborhood X but it’s all one race, you might also show them a couple homes in Neighborhood Y which is more diverse but otherwise similar, just to expand their choice. They can always say no, but at least they saw it. By giving choices, you avoid silently narrowing their options based on assumptions.
A concrete example: When asked about schools or demographics, follow a script like, “There are some great resources online to check school performance and community data. I can send you links and you can see what matters to you.” This way you provide value (info) without injecting bias.
The Equal Service Model often recommends providing consistent informational handouts or links to all clients – say a packet that includes school info sources, crime stats websites, transit options, etc., for the area – so everyone gets the same data and can draw their own conclusions.
2️⃣ Continuous Education and Training
Commit to ongoing learning about fair housing and diversity. Take advantage of courses, workshops, or even just good reading material. NAR now offers a Fairhaven simulation training (an interactive online tool where you navigate situations as an agent facing fair housing scenarios) – it’s a great way to test yourself and see how easy it is to slip up if not careful.
There’s also implicit bias training videos from NAR (“Bias Override” training) which are insightful. The National Fair Housing Alliance has proposed comprehensive training for all agents that covers history of segregation, the industry’s role, and best practices for equity. In some states, fair housing is required coursework for license renewal (for instance, New York introduced specific requirements after that Newsday investigation).
Even if it’s not required, consider enrolling in a fair housing CE course voluntarily – it can only help. Many online real estate CE providers have updated content on implicit bias and fair housing in the 21st century. These are often not expensive, basically affordable real estate CE online that yields a lot of value in awareness.
3️⃣ Use Data, Not Bias
Whenever possible, lean on data to guide clients. If someone asks, “Is this a good investment area?” or “Will this neighborhood go up in value?”, instead of subjective “I think so” which might be bias-laden, provide recent sales trends, inventory levels, or insights from reputable sources.
By being the agent of data, you avoid being the agent of personal opinion that could be tainted by racial assumptions. Plus, clients appreciate evidence-based answers.
4️⃣ Speak Up and Lead by Example
If you witness discrimination or bias by other agents, consider addressing it. This can be tricky, but there are ways. If it’s within your brokerage, maybe suggest a fair housing refresher training for the team, citing new findings or news (“Hey, saw this article about how some agents steer without realizing it; maybe we should have a meeting about it?”).
If another agent makes an offhand comment like, “Those clients were tough; you know how [group] can be,” don’t laugh it off – gently push back: “Actually, I try not to generalize; every client is different. These times demand we treat everyone fairly, right?” It might feel awkward, but those little moments set a tone.
Junior agents especially take cues from veterans; if you’re in that veteran role, your inclusive behavior can influence others.
5️⃣ Promote Integration as a Value
When marketing yourself or interacting in the community, let it be known you value diversity. You can highlight in your bio or social media that you’re experienced in working with clients from all backgrounds, maybe mention languages you speak or neighborhoods you’ve lived in. During showings or open houses, treat all visitors with equal warmth.
It gets noticed. There have been too many stories of minority buyers going to open houses and getting the cold shoulder, whereas others were greeted cheerfully. Not in your house! Make everyone feel like a potential buyer worth your time (because they are).
Additionally, consider partnering with organizations that support fair housing or homeownership for underrepresented groups. Volunteer at a housing fair in a minority community, or join a local chapter of associations like NAREB (National Association of Real Estate Brokers, which focuses on Black homeownership) or AREAA (Asian Real Estate Association of America), etc., if that aligns with your market. These experiences broaden your perspective and signal your commitment to equal service.
Why This Effort Matters (Beyond the Obvious)
Ethically, we know why it matters – it’s the right thing to do and it’s the law. But it also matters for your business success and the industry’s longevity. The population is becoming more diverse year by year. If you want to thrive, you need to serve all segments of that growing market.
Agents who build a reputation for fairness and inclusivity often get referrals across community lines. Think about it: if a family feels genuinely well-treated by you, they’ll refer friends and colleagues to you, regardless of race. On the flip side, if word gets out that you steer or have biases, you might lose not just clients of that group but anyone who values fairness.
Furthermore, being aware of bias protects you legally. Steering or making any discriminatory statements can result in complaints, lawsuits, or disciplinary action. No one wants to be the agent in the next newspaper exposé or HUD case. By diligently following fair housing best practices, you keep your career safe from those risks.
Finally, think of the bigger legacy. Real estate agents historically played a role in segregation (through blockbusting, redlining support, etc., decades ago). We have an opportunity now to reverse that legacy and be champions of integrated, inclusive communities.
It’s actually quite rewarding to help a person or family break a barrier – like being the first of a background in a neighborhood, or simply finding their dream home where they initially felt they might not belong. We get to help make the “American Dream” accessible to more people.
Lead With Fairness, Every Client, Every Time
Confronting racial bias in real estate isn’t a one-time task; it’s an ongoing commitment. But it starts with mindful actions in each client interaction. By treating every individual as just that – an individual, not a stereotype – and by setting consistent practices, you ensure you’re offering equal professional service.
It might mean unlearning some habits or resisting urges to “help” clients in a way that actually limits them. It certainly means staying educated: fair housing isn’t a static topic, so keep up with news and consider making courses on diversity a regular part of your personal professional development (remember, real estate CE courses aren’t just obligations; the right ones can be truly eye-opening and career-enhancing!).
Every time you hand keys to a buyer for a home they love – knowing you served them with fairness and respect – you can feel good about that transaction. And if all agents do the same, the cumulative effect is huge. Neighborhoods become more open, clients trust our industry more, and we slowly but surely rebuild the reputation of real estate as a force for equal opportunity.
So let’s play our role. Let’s be the generation of agents that finally buries discriminatory practices and becomes known for our inclusive excellence. The next time you catch yourself in an assumption, flip the script. The next time a client tests your ethical boundaries, stand firm.
These everyday decisions shape the experience of today’s homebuyers and renters. You have the power to make those experiences welcoming and fair for everyone, regardless of race or background.
In doing so, you’re not just avoiding bias – you’re actively opening doors, literally and figuratively. And that’s something to be proud of, every single day in this business.
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