Spatial and Racial Patterning of Real Estate Broker Listings in New York City

Abstract

It has been well documented that Black homeseekers face discrimination in the housing market in the form of racial steering and other institutional policies and practices that are critical in limiting housing access. Less is known about the mechanisms that operate on the other side of real estate transactions to perpetuate racially segregated neighborhoods. We investigated whether White and Black brokers face segregation in the housing market. That is, to what extent do White and Black brokers differentially market property listings in neighborhoods of varying racial composition? Using real estate listings extracted from the websites of two of the largest New York City real estate brokerages, we examined whether Black and White brokers market properties primarily in Black and White neighborhoods, respectively; and whether, controlling for gender and experience level, Black brokers had a lower average price per square foot than White brokers. Results showed that Black brokers overwhelmingly marketed properties in Black neighborhoods, with fewer listings in White areas. Black brokers also marketed properties with an average price per square foot that was $197 lower than White brokers. Black brokers who worked in offices in Black neighborhoods had the lowest asking price of all brokers. Taken together, Black and White real estate brokers control a bifurcated market in NYC, perpetuating residential segregation and Black-White income and wealth disparities.

Racism: Origin and Theory

“…It is still very much with us. This includes steering by real estate agents and block busting (Kwate, Goodman, Jackson, & Harris, 2013); denying home loans and charging higher mortgage interests rates to Blacks (Woods, 2012); maintaining racially segregated schools by using unequal home values as the basis of school funding (Johnson, 2014); using seniority as a basis for employment (Byron, 2010), making Blacks the last hired and the first fired; and criminalizing Black men in the application of laws (Meares, 2014).…”

The Race Against Time

“…Controlling for income, Black renters submit more applications than White counterparts, Black home buyers make more offers, and renters and buyers alike are more likely to report that the search was difficult (Krysan 2008). Complicating strategies to attenuate exclusionary discrimination by working with Black real estate brokers is the fact that Black brokers are themselves largely shut out of White markets, listing properties primarily in Black neighborhoods (Kwate et al, 2013a).…”