{"id":18968,"date":"2023-02-13T10:07:22","date_gmt":"2023-02-13T18:07:22","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=18968"},"modified":"2026-04-08T10:27:07","modified_gmt":"2026-04-08T17:27:07","slug":"buyer-what-is-steering-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-what-is-steering-in-real-estate\/","title":{"rendered":"What\u2019s Steering in Real Estate? A Buyer\u2019s Guide to Neighborhood Segregation"},"content":{"rendered":"

You\u2019re ready to buy a home, and the first thing you do is hire a trusted real estate agent<\/a>. You share your budget, what you\u2019re looking for, and the neighborhoods you\u2019re considering.<\/p>\n

In an ideal world, your agent listens carefully and then sends you every listing that could possibly fit your list of must-haves. Their recommendations are guided by your actual needs rather than their own preconceived notions about what they think you might need. They patiently answer your questions and guide you to community resources that can help you make the best decision for you and your family.<\/p>\n

Unfortunately, this ideal experience isn\u2019t how things pan out for a lot of homebuyers in the United States, especially minorities<\/a>.<\/p>\n

Real estate agents have a long history of steering buyers toward certain neighborhoods based on race, color, religion, and other discriminatory factors. In fact, steering is one of the big reasons for the widespread neighborhood segregation we see in the U.S., even today, despite the Supreme Court finding in 1979<\/a> that the practice violates the Fair Housing Act<\/a>.<\/p>\n

But what exactly is steering in real estate, and how does it play out across communities? We\u2019ll dive into what you need to know about steering, the laws surrounding this controversial practice, and what you can do if you think you\u2019re being steered by your agent.<\/p>\n

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<\/a> Source: (Rob Marmion \/ Shutterstock)<\/figcaption><\/figure>\n

What is steering in real estate?<\/h2>\n

Steering is when a real estate agent influences a homebuyer to purchase in certain communities based on their race, therefore limiting the buyer\u2019s choices.<\/p>\n

Let\u2019s look at a hypothetical example of steering: a white buyer and a Black buyer approach the same real estate agent looking to buy homes. Both buyers have similar financial profiles and similar needs for their future homes. The agent sends the white buyer 40 listings in 5 different communities, all of which are predominantly white. The agent sends the Black buyer 22 listings in 3 communities, all of which are racially mixed or predominantly Black.<\/p>\n

(In fact, the above scenario is an example of how researchers go about determining whether and how prevalent the practice of steering is, using a method known as “paired testing<\/a>.”)<\/p>\n

This is how steering often plays out. Agents direct clients to neighborhoods based on their race.<\/p>\n

In practice, this means that white buyers are often given more housing options and advised against moving to diverse neighborhoods. Black buyers tend to be given fewer options, and they are steered toward predominantly Black or mixed-race neighborhoods.<\/p>\n

Steering is illegal under the Fair Housing Act<\/a> (more on that later). Real estate agents are required<\/a> to offer equal professional service to all homebuyers, no matter their race, religion, color, disability, national origin, sex, or familial status.<\/p>\n

What steering is<\/h3>\n

Steering is usually practiced by real estate agents in one of two major ways:<\/p>\n

    \n
  1. Counseling clients to buy in certain neighborhoods or towns based on their race.<\/li>\n
  2. Not showing clients all of their relevant home options based on their race.<\/li>\n<\/ol>\n

    Although steering can be done in many different \u2014 and often insidious \u2014 ways, most steering behavior typically falls under one of these two categories.<\/p>\n

    What steering can look like in practice<\/h3>\n

    Let\u2019s take a look at how steering can shake out in real life. Here are a few examples of ways agents can steer their clients.<\/p>\n