Some Aspects of Housing Discrimination Haven't Changed in 34 Years

Thernreal story about racial discrimination in housing today, ShaunrnDonovan, Secretary of the Department of Housing and Urban Developmentrn(HUD) said, is the lack of any real differences across cities andrnregions. Donovan and and MargeryrnTurner of the Urban Institute spoke to reporters on Tuesday in conjunctionrnwith the realease of the HUD/Urban Institute summary study HousingrnDiscrimination Against Racial and Ethnic Minorities 2012.rn</p

Thererncanrnbernnornquestionrnthatrnthernhousingrncircumstancesrnofrnwhitesrnandrnminoritiesrndifferrnsubstantially,rnthe summary study says.rnWhitesrnarernmorernlikelyrntornownrntheirrnhomes,rntornoccupyrnbetterrnqualityrnhomesrnandrnapartments,rnandrntornliverninrnsafer,rnmorernopportunity-richrnneighborhoods.rn However,<bitrnisrnlessrnobvious</bwhether-orrnhowrnmuch-theserndisparitiesrnresultrnfromrncurrentrnracialrnandrnethnicrndiscriminationrninrnthernhousingrnmarketrnor becausernwhitesrnandrnminoritiesrndifferrnsystematicallyrninrnemployment,rnincome,rnassets,rnandrndebts.</p<pThernHUD/Urban Institute study involved 8,000 paired tests in 28 largernmetropolitan areas. Testers were used to determine how much, if anyrndiscrimination still exists in housing. The study found the types ofrndiscrimination were largely hidden but existed to nearly the samerndegree in every location.</p

Therntests involved sending two individuals out in search of housing -rnboth rental housing and real estate sales were tested. Thernindividuals were marched in pairs by age, gender, and familyrncomposition, but each pair had one white member and one minorityrnmember – Black, Hispanic, or Asian. Turner said the pairs werernunambiguously equally qualified to rent or purchase the type ofrnresidence they were seeking. Testersrnindependently recorded the treatment they experienced, includingrninformation about all the homes or apartments recommended and shown. </p<pWhatrnthe study found was that, as both Turner and Donovan put it, therndoors-slamming-in-faces type of discrimination, while not gone, isrnrare. What has taken its place is a discrimination of fewer choices.rn </p<pWhenrnwhite and minority pair members contacted rental or real estaternagents they were almost equally likely to be given information and anrnappointment to see at least one available unit, but when differencesrnin treatment occur, white home seekers are more likely to be favoredrnthan minorities. Real estate agents and rental housing providersrnrecommend and show fewer available homes and apartments to minorityrnfamilies, thereby increasing their costs and restricting theirrnoptions.</p<pWhenrnblack renters contact agents about advertised housing they are toldrnabout 11 percent fewer available units than were the white testersrnand shown roughly 4 percent fewer. Hispanic renters learned about 10rnpercent fewer available units and were shown almost 7 percent fewer. Asian renters were told about 10 percent fewer options and shown 7rnpercent fewer units.</p<pWhenrnit came to houses for sale, prospective black homebuyers learnedrnabout 17 percent fewer listings and were shown 18 percent fewer. Asians were told about 15 percent and shown 19 percent fewer units. </p<pHispanicrnrenters were informed about 12 percent fewer units and shown about 7rnpercent fewer but the difference between the White testers and thernHispanic ones were not statistically significant when it came tornhomes for sale.</p

</p

Turnerrnsaid the study methology allows HUD to catch discrimination in actionrnat the very moment is happening. But the testing can’t capture allrnforms of discrimination. For example it does not look at differencesrnin advertising practices that might limit a home seeker’s knowledgernabout available housing options nor can it measure differences inrntreatment that might occur after the initial inquiry, whenrnhome seekers submit applications, seek mortgage financing, orrnnegotiate leases. Nor can the pair testing replicate what averagernminority home seekers encounter as they may not be as unambiguouslyrnqualified as the matched pairs. </p<pThernstudy was the fourth conducted by HUD at approximately 10 yearrnintervals beginning in 1979. Among the changes noted in the latestrnstudy compared to the previous one is that only discrimination forrnavailability of the advertised unit has declined. Black rentersrntoday appear less likely than a decade ago to be told that advertisedrnunits are unavailable. Asian renters are more likely than a decadernago to be shown fewer units but they are less likely to experiencernadverse treatment when making future arrangements with the agent.rn</p

Changes in other measures of rental discrimination are notrnstatistically significant. For changes in sales discrimination overrnthe most recent decade, the authors find less evidence of meaningfulrnprogress. The only statistically significant change is for Hispanics,rnwho are less likely than a decade ago to be denied financing helprncompared to equally-qualified white homebuyers.</p

Althoughrnthe most blatant forms of housing discrimination (refusingrnto meet with a minority home seeker or providerninformation about any availablernunits) haverndeclined since the first national paired-testingrnstudy in 1977, the forms of discrimination that persist (providingrninformation about fewerrnunits) raise the costs of housing searchrnfor minorities and restrictrntheir housing options. Looking forward,rnnational fair housing policies must continue to adapt to addressrnthe patterns of discrimination and disparity that persist today.rn</p

Thernstudy says notrneveryrninstancernofrnwhite-favoredrntreatmentrnshouldrnberninterpretedrnasrnsystematicrndiscrimination.rn Randomrnfactorsrnmayrncontribute</btornobservedrndifferences in treatment; in other tests, minorities mayrnexperiencernmorernfavorablerntreatmentrnthanrntheirrnwhiternpartnersrnforrnsystematicrnreasons.rnThe study reports the difference between the share of tests where thernwhite was favored over the minority and when the opposite occurred. This results in a net measure which provides a conservativernlower-bound estimate of systematic discrimination. </p<pMinoritiesrnwhose ethnicity was more readily identifiable experienced morerndiscrimination than those who might be mistaken for white. Specifically, black and Asian renters whose race is readilyrnidentifiable based on name and speech are significantly more likelyrnto be denied an appointment than minorities perceived to be white.</p<pThernstudy does not support widely held assumptions about when and whererndiscrimination is more likely to occur. There were no substantialrndifferences across regions or metropolitan areas where housing wasrnhit by the Great Recession to a greater or lesser extent.</p