Racial steering

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Racial steering refers to the practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. The term is used in the context of de facto residential segregation in the United States, and is often divided into two broad classes of conduct:

Contents

  1. Advising customers to purchase homes in particular neighborhoods on the basis of race.
  2. Failing, on the basis of race, to show, or to inform buyers of homes that meet their specifications. [1]

Overview

Historically the United States of America has been defined by racially segregated neighborhoods. [2] Urban planning up to the 1960s has been documented as one of the causes of this phenomenon. Urban planners have been seen to have practiced early forms of racial steering. [2] Through the use of the restrictive covenant, and the establishment of zoning laws between World War I and World War II, and the use of urban renewal between the 1940s and 1960s, urban planners have aided in the development of racially segregated neighborhoods. [2] After the 1960s, through in part by the Civil Rights Movement, planning efforts were focused more towards advocacy, and community development, rather than maintaining segregation. [2] Although planning practices did change, the racial make-up of neighborhoods did not. [2]

History

Theoretical explanations

Researchers have attempted to explain the racial segregation seen in neighborhoods throughout the United States. There are three leading theories. The first "asserts that the phenomenon is really self – segregation, the result of the preferences of blacks, as with other ethnics, to live in segregated neighborhoods. The second suggests that poverty, aided by the inertia of history has perpetuated segregation. The third suggests that the decline of blatant discrimination of the past has revealed pervasive institutional racism." [3] John E. Farley, argues that although it is plausible for each of these theories to contribute to the segregation seen, his research lends the most support to the second theory, which bases itself on social class. Farley states that "class largely determines what housing people can afford to rent or buy, and since the gap between whites and African Americans is wide with respect to income (U.S. Census Bureau 2001) and even wider with respect to wealth", [4] there tends to be people with similar incomes and wealth in the same areas. Diana Pearce, another researcher, contributes the segregation seen in neighborhoods throughout the United States to institutional racism. She argues that "in [the] consumers' eyes, real estate agents (compared to bankers or builders, for example) are frequently seen as the most expert in nearly every aspect of decision making involved in buying a house." She continues that "as a group they are not only experts, they also control access to housing areas. They are, or can be, community gatekeepers ... and a crucial aspect of the gatekeeper role is the screening of potential residents." [3]

Federal laws

The United States congress passed a series of Acts aimed at combating segregation. The first such act, The Civil Rights Act of 1866, states in subsections 1981, 1981a, and 1982 that all persons born in the United States are citizens regardless of their race, color, or previous condition and as citizens they could make and enforce contracts, sue and be sued, give evidence in court, and inherit, purchase, lease, sell, hold, and convey real estate and personal property. Although this act was passed, it was never enforced on the local, state or national level. [5] A second act, The Civil Rights Act of 1964, through Title VI outlawed segregation in public schools and public places. It also made it illegal to have segregation of the races in schools, housing, or hiring. Like the first act, powers given to enforce it were weak in the beginning, but were later supplemented. [6] A third act, the Civil Rights Act of 1968, subsection 3604, expanded on the Civil Rights Act of 1866. It prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, and sex. This section is also referred to as the Fair Housing Act. This act is enforced at the national level by the Office of Fair Housing and Equal Opportunity at the United States Department of Housing and Urban Development. [7]

Movement organizations

Throughout the past four decades since the passage of the Civil Rights Act of 1968, many people have come together to movement organizations that fight racial discrimination in the housing market. One such organization is the National Fair Housing Alliance. It credits itself "as being the only national organization that is dedicated solely to ending discrimination in housing". [8] In the Greater New York City Metropolitan Area, there are seven local member organizations they are the Fair Housing Council of Central New York, Fair Housing Enforcement Project, Long Island Housing Services, Housing Opportunities Made Equal, Westchester Residential Opportunities, Fair Housing Council of Northern New Jersey, and the Connecticut Fair Housing Center. A second organization is the Fair Housing Law. They are leading a campaign to "increase public awareness of the Fair Housing Act, and its protections". [9] A third organization, The National Fair Housing Advocate, aims itself as being "designed to serve both the fair housing community and the general public with timely news and information regarding the issues of housing discrimination". [10] Each of these organizations share a common theme, bringing up class action lawsuits against people and/ or companies who fail to rent or sell to others based on their race.

Lawsuits

Since the enacting of federal laws and the emergence of movement organizations, there have been several lawsuits brought up against individuals and companies for racial discrimination.

  1. Realty Forum vs. New York State Attorney General (1988): This case involves the New York State Attorney General suing a Yonkers Real – Estate agency, The Realty Forum in 1988 with racial steering. The Attorney General accused the firm of "providing listings of apartments in particular neighborhoods based solely on a client's race or color". The Attorney General began investigating the Realty Forum after receiving complaints from the Westchester Residential Opportunities. The Realty Forum has since been found guilty. [11]
  2. Corcoran Group vs. New York State Attorney General (2006): This case involves the New York State Attorney General suing a real estate brokerage in Brooklyn Heights, New York City with racial steering. The National Fair Housing Alliance following up on a past report found "literal and blatant sales steering... where the agent applied a new trick – he used a map to tell whites instead where they should 'flee to.'" The alliance then referred the case to the New York State Attorney General which subsequently placed charges against the group. The case is still pending. [12]
  3. Coldwell Banker vs Illinois Attorney General (2006): This case involves a Chicago real estate company being accused of racially steering prospective homebuyers by the Illinois Attorney General. The agency was first investigated by the National Fair Housing Alliance in late 2005. The alliance in their report accused the agency of "blatant discrimination...against African Americans". The alliance continues that white prospective home buyers were shown 36 listings while African Americans who were better qualified were shown only seven. The company denies any wrongdoing and the lawsuit is still pending. [13]
  4. Century 21 Town and Country Vs. The Michigan Department of Civil Rights (MDCR) (2006): This case involves the Michigan Department of Civil Rights suing the Century 21 Town and Country of discrimination. The department issued these charges after receiving complaints of illegal steering of white homebuyers to predominantly white neighborhoods and African American homebuyers to predominantly African American neighborhoods. The complaints were initiated by the National Fair Housing Alliance after their investigation which concluded in July 2005. The case is still pending. [14]
  5. United States v. Meta Platforms Inc. (2022): On June 21, 2022, the U.S. Justice Department Civil Rights Division filed a lawsuit in the Southern New York U.S. District Court against Meta Platforms alleging that the company's Lookalike audience tool for targeted advertising on Facebook discriminates against users based on their race, color, religion, sex, disability, familial status, and national origin in its distribution of housing advertisements in violation of Title VIII of the Civil Rights Act of 1968. Meta Platforms settled with the Justice Department on the same day the lawsuit was filed. [15] [16] [17]

Although individual firms have been accused of racial steering throughout the United States and found guilty, researchers point out that there have however been no accusations that would affect a significant amount of the United States population. Diana Pearce states that since "the passage of federal legislation and a landmark Supreme Court decision, there has not been one large lawsuit about housing... in contrast [to] school desegregation and employment discrimination, where ... laws and court decisions have had comparatively more impact". [3] She continues that "as long as it is assumed in the general legislation and as long as lawyers and judges assume generally that the problem in housing discrimination is that of a few homeowners (or real estate agents who step out of line), practices ... will continue to perpetuate housing segregation". [3]

Debate

The notion of "a debate over racial steering" does not suggest that racial steering is lawful in the US. Under US civil rights law, racial steering to create or maintain segregation is unlawful and has been the target of civil rights reform since at least the mid-20th century. Racial or ethnic minorities suffer significant disadvantages. The discriminated groups have reacted through social enclave construction, sometimes resulting in protected markets and the creation of social capital, notwithstanding exclusion and discrimination.

Ripple effect in blighted neighborhoods

Racially segregated minority neighborhoods have been labeled as blighted. Characteristics of a blighted neighborhoods include rundown homes, streets strewn with garbage, poor lighting, and high rates of crime. Douglas Massey and Nancy Denton explore this logic in their book "American Apartheid". Massey and Denton focus their research on the effects of residential housing discrimination towards African Americans. They argue that racial segregation of lower income residents, who are only capable of making ends meet, creates a neighborhood that is characterized as going "downhill". [18] Massey and Denton argue that this occurs because of a downward spiral effect. If one homeowner cannot afford to maintain their property and allows it to become run down, other homeowners in the area will be less inclined to invest money into their own property. [18] Massey and Denton also point out that "at some point, a threshold is crossed, beyond which the pattern becomes self – reinforcing and irreversible". [18]

Academic achievement and racial segregation

Racially segregated minority neighborhoods have been associated with having low academic achievement rates. Rumberger and Willms have explored the topic and argue that segregation contributes to minority underachievement in at least two ways. Firstly, students in segregated schools may receive a poor quality of education because schools serving minorities or low socioeconomic groups may have lower funding levels, inexperienced teachers, and reduced levels of other resources that contribute to the student's academic achievement. [19] Secondly, Rumsberg and Willms argue that the residential racial segregation leads to schools having the same composition which can directly affect the student's level of academic achievement. They call these differences "contextual effects". Contextual effects are defined as peer interactions and the teaching and learning climate in the school. [19]

Also, Rumsberg and Willms state that once a school is experiencing the effects of racial segregation, it is difficult to reverse them. [19]

Crime rate and racial segregation

Since the 1980s violent crimes in the United States have been steadily declining. Between 1980 and 1990, the murder rate for the United States fell by 9%, and between 1973 and 1992, the victimization rate of rapes fell by 28%. [20] "Although rates of crime may be going down for the United States generally, they are spirally upward for one specific group of Americans: African Americans." [20] Douglas Massey argues that the rising of African American poverty and the addition of racial segregation produces a sharp increase in the geographic concentration of poverty. He continues by stating that "as poverty is concentrated… all things associated with it are concentrated, including crime… thus… creating an ecological niche characterized by high levels of violence and a high risk of victimization". [20] Furthermore, Massey argues that a person living within this niche becomes violent themselves in an effort to deter potential criminals and increase their chance of survival, thus creating a cycle of African American violence which at some point cannot be reversed. [20]

Low income black communities that have been segregated by social forces through city design have higher levels of criminal activity rates. Different methods when applied help us understand how social forces and urban design segregated black communities from white communities. "Shaw and McKay argued that three structural factors- low economic status,ethnic heterogeneity and residential mobility- led to the disruption of community social organization,which,in turn, accounted for variations in crime and delinquency." [21] Radical geography has been searching for connections between "the truths of how capitalism's political economy structures urban space and the emphasis on the subjective evaluation of safe urban space.". [22] The geographical structure of a city is designed to keep high income communities separate from low income, generally black communities are formed with this structure. This type of segregation tends to increase rates of intra- racial victimization, but decrease rates of inter-racial victimization." [23] One method of segregating blacks from whites is through 'gated communities' which isolates the high income population from the low income by gating the higher status community with fences or bars. The result of this 'gated' segregation leads to an unmanageable high criminal activity called a 'ghetto' community where "spatial isolation leads to social isolation, which in turn has a variety of negative outcomes including serious crime." [23] Erecting physical barriers such as gates protects the high income community, leaving the black community to be isolated and an island by itself referenced as a 'ghetto' community. This can be referred to as 'Broken Windows', in which a community "sends a signal" that it "does not care about itself" and the community is unable to protect itself from "criminal invasion". [24] By pushing the low income earners out of the gentrified community, the city is creating a large segregated criminal zone within the city. "This divide has, in turn, produced disparate social worlds, in which the interests, resources, opportunities, and concerns of racial groups located in distinct neighborhoods increasingly diverge, ultimately leading to unequal rates of crime." [25] The ghetto is labeled as an undesirable area to live and the people in that area are labeled the same. "We have also seen that those who commit crimes tend to be from the same groups that are most likely to be victimized." [26] This causes criminal behavior of the people within the area as "greater racial segregation appears to substantially increase violent crimes such as robberies and aggravated assaults." [27] However it could be argued that the area that an underprivileged person lives in dictates the criminal mentality of the individual. "Poor individuals are simply more prone to committing property crimes than are richer individuals." [27] Having so many people displaced into the ghetto region of a city that commit many different types of criminal actives would be a reason why those communities have higher crime rates.

Protective markets and racial segregation

Racial residential segregation has allowed minority businesses to strive economically. Research has shown that these neighborhoods create a protective market, one that is defined as a specialty that caters to the culturally based tastes of its residents. [28] Research has also shown that ethnic business owners have an insider's knowledge of the clientele that they serve because they themselves are a part of it. With such knowledge, it is said that they have created a protective market, one that will thrive if the ethnic composition of the neighborhood does not change. [29]

Ethnic economies and racial segregation

Racially segregated neighborhoods have what are called ethnic economies. An ethnic economy is defined as an "immigrant or minority business and employment sector that coexists with the general economy". [30] Smith argues that an ethnic economy helps in several ways. First, it provides jobs for all able–bodied family members. [31] Second, it has been shown that ethnic economies provide more opportunities for homeownership. [31] Finally, the ethnic infrastructure that is built up, will allow for future growth of the community, thus paving the way for new residents. [31]

Social networks, social capital, and racial segregation

Racially segregated neighborhoods have strong social networks. These networks have been shown to create social capital, which has been linked to having positive effects on minority residents. First, Portes argues that an individual will gain access to power and political positions through the direct and indirect employment of social connections. [32] He continues by stating that this access to power and political positions, allows for social mobility. [32] Second, Portes states that social capital is generated by social networks of relationships and without the reciprocity, trust, and social norms that come with these networks, a resident who is in need would not be given an opportunity to succeed. [32]

Related Research Articles

<span class="mw-page-title-main">Racial segregation</span> Systemic separation of people into racial or other ethnic groups in daily life

Racial segregation is the separation of people into racial or other ethnic groups in daily life. Racial segregation can amount to the international crime of apartheid and a crime against humanity under the 2002 Rome Declaration of Statute of the International Criminal Court. Segregation can involve the spatial separation of the races, and mandatory use of different institutions, such as schools and hospitals by people of different races. Specifically, it may be applied to activities such as eating in restaurants, drinking from water fountains, using public toilets, attending schools, going to films, riding buses, renting or purchasing homes or renting hotel rooms. In addition, segregation often allows close contact between members of different racial or ethnic groups in hierarchical situations, such as allowing a person of one race to work as a servant for a member of another race.

<span class="mw-page-title-main">Redlining</span> Systemic denial of services to some areas

Redlining is a discriminatory practice in which services are withheld from potential customers who reside in neighborhoods classified as "hazardous" to investment; these neighborhoods have significant numbers of racial and ethnic minorities, and low-income residents. While the best-known examples involve denial of credit and insurance, also sometimes attributed to redlining in many instances are denial of healthcare and the development of food deserts in minority neighborhoods. In the case of retail businesses like supermarkets, the purposeful construction of stores impractically far away from targeted residents results in a redlining effect.

Desegregation is the process of ending the separation of two groups, usually referring to races. Desegregation is typically measured by the index of dissimilarity, allowing researchers to determine whether desegregation efforts are having impact on the settlement patterns of various groups. This is most commonly used in reference to the United States. Desegregation was long a focus of the American civil rights movement, both before and after the US Supreme Court's decision in Brown v. Board of Education, particularly desegregation of the school systems and the military. Racial integration of society was a closely related goal.

<span class="mw-page-title-main">Ghetto</span> Neighborhood inhabited by a minority group

A ghetto is a part of a city in which members of a minority group live, especially as a result of political, social, legal, environmental or economic pressure. Ghettos are often known for being more impoverished than other areas of the city. Versions of the ghetto appear across the world, each with their own names, classifications, and groupings of people.

<span class="mw-page-title-main">Civil Rights Act of 1968</span> United States law

The Civil Rights Act of 1968 is a landmark law in the United States signed into law by United States President Lyndon B. Johnson during the King assassination riots.

Geographical segregation exists whenever the proportions of population rates of two or more populations are not homogenous throughout a defined space. Populations can be considered any plant or animal species, human genders, followers of a certain religion, people of different nationalities, ethnic groups, etc.

Blockbusting is a business practice in the United States in which real estate agents and building developers convinced white residents in a particular area to sell their property at below-market prices. This was achieved by fearmongering the homeowners, telling them that racial minorities would soon be moving into their neighborhoods. The blockbusters would then sell those same houses at inflated prices to black families seeking upward mobility. Blockbusting became prominent after post-World War II bans on explicitly segregationist real estate practices. By the 1980s it had mostly disappeared in the United States after changes to the law and real estate market.

<span class="mw-page-title-main">1964 California Proposition 14</span> 1964 California ballot proposition

California Proposition 14 was a November 1964 initiative ballot measure that amended the California state constitution to nullify the 1963 Rumford Fair Housing Act, thereby allowing property sellers, landlords and their agents to openly discriminate on ethnic grounds when selling or letting accommodations, as they had been permitted to before 1963. The proposition became law after receiving support from 65% of voters. In 1966, the California Supreme Court in a 5–2 split decision declared Proposition 14 unconstitutional under the equal protection clause of the United States Constitution. The U.S. Supreme Court affirmed that decision in 1967 in Reitman v. Mulkey.

<span class="mw-page-title-main">Racial segregation in the United States</span>

Facilities and services such as housing, healthcare, education, employment, and transportation have been systematically separated in the United States on racial grounds. The term is mainly used in reference to the legally or socially enforced separation of African Americans from whites, but it is also used in reference to the separation of other ethnic minorities from majority and mainstream communities. While mainly referring to the physical separation and provision of separate facilities, it can also refer to other manifestations such as prohibitions against interracial marriage, and the separation of roles within an institution. Notably, in the United States Armed Forces up until 1948, black units were typically separated from white units but were still led by white officers.

The Chicago Lawyers' Committee for Civil Rights is a consortium of American law firms in Chicago that provides legal services in civil rights cases

Mortgage discrimination or mortgage lending discrimination is the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion.

African-American neighborhoods or black neighborhoods are types of ethnic enclaves found in many cities in the United States. Generally, an African American neighborhood is one where the majority of the people who live there are African American. Some of the earliest African-American neighborhoods were in New Orleans, Mobile, Atlanta, and other cities throughout the American South, as well as in New York City. In 1830, there were 14,000 "Free negroes" living in New York City.

Residential segregation is the physical separation of two or more groups into different neighborhoods—a form of segregation that "sorts population groups into various neighborhood contexts and shapes the living environment at the neighborhood level". While it has traditionally been associated with racial segregation, it generally refers to the separation of populations based on some criteria.

In the United States, housing segregation is the practice of denying African Americans and other minority groups equal access to housing through the process of misinformation, denial of realty and financing services, and racial steering. Housing policy in the United States has influenced housing segregation trends throughout history. Key legislation include the National Housing Act of 1934, the G.I. Bill, and the Fair Housing Act. Factors such as socioeconomic status, spatial assimilation, and immigration contribute to perpetuating housing segregation. The effects of housing segregation include relocation, unequal living standards, and poverty. However, there have been initiatives to combat housing segregation, such as the Section 8 housing program.

<span class="mw-page-title-main">Subsidized housing in the United States</span> Rental assistance for low-income households

In the United States, subsidized housing is administered by federal, state and local agencies to provide subsidized rental assistance for low-income households. Public housing is priced much below the market rate, allowing people to live in more convenient locations rather than move away from the city in search of lower rents. In most federally-funded rental assistance programs, the tenants' monthly rent is set at 30% of their household income. Now increasingly provided in a variety of settings and formats, originally public housing in the U.S. consisted primarily of one or more concentrated blocks of low-rise and/or high-rise apartment buildings. These complexes are operated by state and local housing authorities which are authorized and funded by the United States Department of Housing and Urban Development (HUD). In 2020, there were 1 million public housing units.

Housing discrimination in the United States refers to the historical and current barriers, policies, and biases that prevent equitable access to housing. Housing discrimination became more pronounced after the abolition of slavery in 1865, typically as part of Jim Crow laws that enforced racial segregation. The federal government didn't begin to take action against these laws until 1917, when the Supreme Court struck down ordinances prohibiting blacks from occupying or owning buildings in majority-white neighborhoods in Buchanan v. Warley. However, the federal government as well as local governments continued to be directly responsible for housing discrimination through redlining and race-restricted covenants until the Civil Rights Act of 1968.

Racial inequality in the United Statesof America identifies the social inequality and advantages and disparities that affect different races within the country. These can also be seen as a result of historic oppression, inequality of inheritance, or racism and prejudice, especially against minority groups.

<span class="mw-page-title-main">School segregation in the United States</span> Racial separation in schools

School segregation in the United States was the separation of students based on their ethnicity. Segregation laws were dismantled in the late 1960s by the U.S. Supreme Court. Segregation was practiced in the north and segregation continued longstanding exclusionary policies in much of the South after the Civil War. School integration in the United States took place at different times in different areas and often met resistance. Jim Crow laws codified segregation. These laws were influenced by the history of slavery and discrimination in the US. Secondary schools for African Americans in the South were called training schools instead of high schools in order to appease racist whites and focused on vocational education. After the ruling of Brown v. Board of Education, which banned segregated school laws, school segregation took de facto form. School segregation declined rapidly during the late 1960s and early 1970s as the government became strict on schools' plans to combat segregation more effectively as a result of Green v. County School Board of New Kent County. Voluntary segregation by income appears to have increased since 1990. Racial segregation has either increased or stayed constant since 1990, depending on which definition of segregation is used. In general, definitions based on the amount of interaction between black and white students show increased racial segregation, while definitions based on the proportion of black and white students in different schools show racial segregation remaining approximately constant.

Affirmatively Furthering Fair Housing (AFFH) is a provision of the 1968 federal Fair Housing Act signed into law by President Lyndon B. Johnson. The law requires that "All executive departments and agencies shall administer their programs and activities relating to housing and urban development in a manner affirmatively to further the purposes of" the Fair Housing Act. The law also requires the Secretary of the United States Department of Housing and Urban Development (HUD) to administer all HUD programs in a manner that affirmatively furthers fair housing.

<span class="mw-page-title-main">American ghettos</span> Poor racially segregated urban neighborhoods in the United States

Ghettos in the United States are typically urban neighborhoods perceived as being high in crime and poverty. The origins of these areas are specific to the United States and its laws, which created ghettos through both legislation and private efforts to segregate America for political, economic, social, and ideological reasons: de jure and de facto segregation. De facto segregation continues today in ways such as residential segregation and school segregation because of contemporary behavior and the historical legacy of de jure segregation.

References

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