In today’s real estate market, staying compliant with fair housing laws isn’t just about avoiding legal trouble—it’s about building a career grounded in ethics, equity, and trust. While blatant discrimination is rare among modern agents, some behaviors from the past still linger in subtle ways, and they can land you (and your brokerage) in serious trouble.
That’s why terms like steering, redlining, and blockbusting remain essential parts of any agent’s education—even in 2025. Whether you’re a new licensee or an experienced broker, brushing up through real estate CE courses or affordable real estate CE online can help you stay informed and protected.
Let’s break down each of these outdated and illegal practices, with real-world examples and the consequences you need to know.
What Is Steering?
Steering is the illegal practice of influencing a buyer or renter’s housing choices based on race, national origin, religion, familial status, disability, sex, or other protected classes under the Fair Housing Act.
In simple terms, steering occurs when an agent guides or limits a client’s housing options—either intentionally or unintentionally—based on assumptions about where they “should” live.
Modern-Day Example:
A buyer tells you they want a quiet, family-friendly neighborhood. You only show them homes in predominantly white suburbs, avoiding listings in more diverse or urban areas—even if they meet the client’s stated needs.
Even if you think you’re doing the client a favor, this can constitute steering. It denies the client full access to all housing options and reinforces housing segregation.
Agents and brokers found guilty of steering can face HUD complaints, lawsuits, license suspension, and fines.
Steering undermines fair housing principles and perpetuates inequality in access to education, transportation, and community resources.
This is why real estate continuing education requirements often include fair housing training as a core topic—it's not optional knowledge; it's a professional obligation.
What Is Redlining?
Redlining refers to the discriminatory practice by lenders, insurers, or even real estate professionals of denying services—or offering inferior terms—based on a neighborhood’s racial or ethnic composition.
Historically, redlining got its name from maps that banks used to literally draw red lines around “risky” areas—often communities of color—and deny mortgages, regardless of an applicant’s qualifications.
Modern-Day Example:
A loan officer routinely denies pre-approvals for buyers wanting to purchase in certain zip codes based on historical “risk scores,” even though the applicants meet all underwriting criteria.
While redlining is most associated with lenders, real estate professionals can indirectly participate by discouraging buyers from looking in redlined areas or by participating in systemic practices that limit access.
Violations can lead to enforcement actions by HUD or the Consumer Financial Protection Bureau (CFPB), as well as civil lawsuits.
Redlining has long-term effects on wealth building, education access, and generational opportunity. As real estate agents, our role is to support equal access to housing, not reinforce exclusionary patterns.
These are the kinds of real-world issues addressed in online real estate CE courses with fair housing components. They help agents recognize how old practices can still show up in modern workflows.
What Is Blockbusting?
Blockbusting is a now-illegal practice where real estate professionals deliberately stir up fear to prompt homeowners to sell—often at reduced prices—based on changes in the racial or ethnic makeup of the neighborhood.
Historical Example:
“You should sell now before home values drop—minority families are moving in.”
Modern-Day Example:
A subtle version might involve suggesting to a homeowner that “the neighborhood is changing fast” or “there’s a lot of movement happening around here,” hinting at a demographic shift.
Even if you don’t use overt racial language, using fear to pressure a sale based on community composition violates fair housing laws.
Blockbusting is prohibited under the Fair Housing Act, and agents involved can face fines, license loss, and reputational damage.
This practice promotes racial turnover, destabilizes communities, and strips homeowners of equity. It’s unethical, manipulative, and completely unnecessary in a modern, data-driven market.
Most real estate license renewal courses now revisit the dangers of blockbusting, not just as a history lesson but as a reminder of how implicit bias and language can still influence behavior.
Why These Terms Still Matter
You might think, “I would never do that.” And that’s probably true. But intent doesn’t always matter in a fair housing complaint—impact does. Even a casual comment, neighborhood generalization, or filtered MLS search can lead to an accusation of steering or discrimination.
Example:
Saying, “This neighborhood has great schools” could be interpreted as code for racial or socioeconomic steering if not handled carefully.
That’s why continuing education for real estate agents is so important. Laws change. Market trends evolve. And what seems harmless one year could be flagged the next.
Final Thoughts
Today, fair housing compliance isn’t just about avoiding violations—it’s about doing what’s right. Steering, redlining, and blockbusting are rooted in deeply harmful practices, and even subtle echoes of them can hurt communities and damage careers.
Whether you’re just starting out or have years of experience, staying current with real estate continuing education ensures you’re equipped to navigate these challenges ethically and legally.
And remember—our job as real estate professionals is to open doors, not close them.
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For real estate professionals, understanding these concepts can be particularly valuable during discussions with clients about why REALTORS® and real estate agents are knowledgable professionals.
If you’re preparing for your Real Estate Continuing Education or looking to enhance your knowledge through a Real Estate Course, topics like fair housing and confronting racial discrimination can help set you apart.
As part of your License Renewal Course or other Real Estate CE efforts, staying informed on foundational property concepts can make a big difference in your expertise and client relationships.