Steering (Fair Housing Violation)
Steering is an illegal practice where real estate agents direct prospective buyers or renters toward or away from certain neighborhoods based on their race, color, religion, national origin, sex, familial status, or disability.
Exam Tip
Steering = directing clients TO or AWAY FROM areas based on protected class. ALWAYS illegal. Let clients choose where they want to look.
What is Steering?
Steering is a discriminatory practice prohibited by the Fair Housing Act where real estate professionals guide clients toward or away from particular neighborhoods based on protected characteristics. It's a form of housing discrimination that perpetuates segregation and limits housing choices.
How Steering Occurs
| Type | Description |
|---|---|
| Positive Steering | Directing clients TOWARD areas based on their protected class |
| Negative Steering | Directing clients AWAY FROM areas based on protected class |
| Showing Limitations | Only showing properties in certain neighborhoods |
| Information Bias | Providing different information based on client characteristics |
Examples of Steering
| Example | Why It's Illegal |
|---|---|
| Showing Black families only homes in majority-Black neighborhoods | Race-based direction |
| Telling families with children to avoid certain buildings | Familial status discrimination |
| Suggesting wheelchair users only look in specific areas | Disability discrimination |
| Recommending Hispanic buyers avoid certain suburbs | National origin discrimination |
Subtle Forms of Steering
| Practice | How It's Steering |
|---|---|
| Qualifying comments | "You might feel more comfortable in..." |
| School district emphasis | Coded language about demographics |
| Safety concerns | Unfounded crime warnings about diverse areas |
| Property availability claims | Falsely claiming homes aren't available |
| Selective information | Different amenity information by area |
Fair Housing Protected Classes
| Federal Protected Classes |
|---|
| Race |
| Color |
| National Origin |
| Religion |
| Sex (includes gender identity) |
| Familial Status |
| Disability |
Penalties for Steering
| Consequence | Description |
|---|---|
| Civil penalties | Up to $100,000+ for repeat offenders |
| License suspension | Loss of real estate license |
| Damages | Actual and punitive damages to victims |
| Federal prosecution | Criminal charges in severe cases |
How to Avoid Steering
| Best Practice | Implementation |
|---|---|
| Let clients choose | Show all qualifying properties in requested areas |
| Provide equal information | Same info to all clients regardless of background |
| Document interactions | Keep records of properties shown and discussions |
| Avoid assumptions | Don't assume where clients will "fit in" |
| Training | Regular fair housing education |
Related Fair Housing Violations
| Violation | Description |
|---|---|
| Blockbusting | Inducing panic selling based on protected class entering area |
| Redlining | Refusing to lend or insure in certain areas |
| Discriminatory advertising | Ads that indicate preference for protected classes |
Exam Alert
Steering is ILLEGAL under the Fair Housing Act. It involves directing buyers/renters TO or AWAY FROM areas based on protected characteristics. Even subtle comments or actions can constitute steering. Real estate agents must show ALL available, qualifying properties regardless of the client's protected class status.
Study This Term In
Related Terms
Blockbusting
Real EstateBlockbusting is an illegal practice where real estate agents induce homeowners to sell by exploiting fears about racial or ethnic groups moving into the neighborhood, then profit by reselling to minority buyers at inflated prices.
Redlining
Real EstateRedlining is the illegal discriminatory practice of denying or limiting financial services, insurance, or other services to residents of certain areas based on racial or ethnic composition rather than individual qualifications.
Fair Housing Act
Real EstateThe Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability.