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. Racial steering is often divided into two broad classes of conduct;

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

Overview

Historically the United States of America

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 has been defined by racially segregated

Racial segregation

Racial segregation is the separation of humans into racial groups in daily life. It may apply to activities such as eating in a restaurant, drinking from a water fountain, using a public toilet, attending school, going to the movies, or in the rental or purchase of a home...

 neighborhoods. Urban Planning

Urban planning

Urban planning incorporates areas such as economics, design, ecology, sociology, geography, law, political science, and statistics to guide and ensure the orderly development of settlements and communities....

 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. Through the use of the restrictive covenant, and the establishment of zoning

Zoning

Zoning is a device of land use planning used by local governments in most developed countries. The word is derived from the practice of designating permitted uses of land based on mapped zones which separate one set of land uses from another...

 laws between World War I

World War I

World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

 and World War II

World War II

World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 , and the use of urban renewal

Urban renewal

Urban renewal is a program of land redevelopment in areas of moderate to high density urban land use. Renewal has had both successes and failures. Its modern incarnation began in the late 19th century in developed nations and experienced an intense phase in the late 1940s – under the rubric of...

 between the 1940s and 1960s, urban planners have aided in the development of racially segregated neighborhoods. After the 1960s, through in part by the Civil Rights Movement

Civil rights movement

The civil rights movement was a worldwide political movement for equality before the law occurring between approximately 1950 and 1980. In many situations it took the form of campaigns of civil resistance aimed at achieving change by nonviolent forms of resistance. In some situations it was...

 , planning efforts were focused more towards advocacy, and community development, rather than maintaining segregation. Although planning practices did change, the racial make-up of neighborhoods did not.

Examples of racial steering

An example of an urban planner practicing racial steering when developing communities is Ebenezer Howard

Ebenezer Howard

Sir Ebenezer Howard is known for his publication Garden Cities of To-morrow , the description of a utopian city in which people live harmoniously together with nature. The publication resulted in the founding of the garden city movement, that realized several Garden Cities in Great Britain at the...

. In 1898 after observing congestion

Congestion

Congestion generally means excessive crowding.Congestion may refer to:* congestion in heart failure, a term to describe low cardiac output seen in heart failure.* Nasal congestion, the blockage of nasal passages due to swollen membranes...

 and pollution

Pollution

Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...

 problems in London

London

London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, Howard developed a community model, which he would call "garden cities" that would lessen the impact of congestion and pollution. Howard hoped that the communities "would offer economy and social advances of the city

City

A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...

 combined with the tranquility, healthful environment, and closeness to nature" of the suburb life. These communities would be set up for Caucasian upper middle class people, and "by virtue of quick rail access, they would have close economic links to other cities, but would have enough economic activity within its boundaries so that the majority of residents would not have to commute" thus lessening the impact of congestion and pollution. "Howard’s work has influenced urban development in dozens if not hundreds of communities" in the United States.

An example of racial steering occurring in the United States can be seen in Detroit, Michigan. When the automobile industry opened up new factories creating many jobs in 1916 - 1917 and again in 1924, many African Americans migrated to reap the benefits. This migration changed the racial, social

Social

The term social refers to a characteristic of living organisms...

, economic, and political landscape of Detroit. City officials were faced with racial tensions almost overnight. Racial tensions were maintained by the city officials when they supported movements

Social movement

Social movements are a type of group action. They are large informal groupings of individuals or organizations focused on specific political or social issues, in other words, on carrying out, resisting or undoing a social change....

 and laws that allowed racial segregation

Racial segregation

Racial segregation is the separation of humans into racial groups in daily life. It may apply to activities such as eating in a restaurant, drinking from a water fountain, using a public toilet, attending school, going to the movies, or in the rental or purchase of a home...

 and discrimination

Discrimination

Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...

 in housing

House

A house is a building or structure that has the ability to be occupied for dwelling by human beings or other creatures. The term house includes many kinds of different dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures...

, employment

Employment

Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

 and community services to continue.

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." 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" you tend to see 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."

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

Civil Rights Act of 1866

The Civil Rights Act of 1866, , enacted April 9, 1866, is a federal law in the United States that was mainly intended to protect the civil rights of African-Americans, in the wake of the American Civil War...

, 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. A second act, The Civil Rights Act of 1964

Civil Rights Act of 1964

The Civil Rights Act of 1964 was a landmark piece of legislation in the United States that outlawed major forms of discrimination against African Americans and women, including racial segregation...

, 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. A third act, the Civil Rights Act of 1968

Civil Rights Act of 1968

On April 11, 1968 U.S. President Lyndon B. Johnson signed the Civil Rights Act of 1968, also known as the Indian Civil Rights Act of 1968. Title VIII of the Civil Rights Act of 1968 is commonly known as the Fair Housing Act, or as CRA '68, and was meant as a follow-up to the Civil Rights Act of 1964...

, 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 on the local, state, and national level with the aid of the United States Department of Housing and Urban Development

United States Department of Housing and Urban Development

The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...

.

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" In the greater 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" 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" 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.
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.
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 wrong doing and the lawsuit is still pending.
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 predominatley white neighborhoods and African American homebuyers to predominately 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.

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 lesilation 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 compartively more impact".. She continues that "as long as it is assumed in the general lesilation 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".

The debate over racial steering

Please note: the notion of "a debate over racial steering" should in no way be taken to suggest that racial steering is lawful in the US. It is not. Under US civil rights law racial steering in order to create or maintain segregation is unlawful and has been the target of civil rights reform since at least the mid-20th century.

Is having racially segregated neighborhoods such a bad thing? This is the major question being posed by leading researchers . There are two dominating theses. The first thesis suggests that racially segregated neighborhoods are characterized as being blighted, having a lack of educational resources, and having high levels of violence. The second thesis challenges this notion and suggests that these neighborhoods are striving economically. They have developed protective markets, have strong and stable social networks, and because of these networks, they have built high levels of social capital .

The ripple effect in a blighted neighborhood

Racially segregated 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".. 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, then other homeowners in the area will be less inclined to invest money into their own property..Massey and Denton also point out that "at some point, a threshold is crossed, beyond which the pattern becomes self – reinforcing and irreversible"..

Academic achievement and racial segregation

Racially segregated neighborhoods have been associated with having low academic achievement rates. Rumberger and Willms have explored this topic. They argue that segregation attributes to minorities under achievement in at least two ways. First, students in segregated schools may receive a poor quality of education. This occurs because schools servicing 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. Second, 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.. Furthermore, Rumsberg and Willms state that once a school is experiencing the effects of racial segregation, it is difficult to reverse them..

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%.. "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." . 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".. 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.

Protective markets and racial segregation

Racial residential segregation has allowed 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. 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.

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". Smith argues that an ethnic economy helps in several ways. First, it provides jobs for all able–bodied family members.. Second, it has been shown that ethnic economies provide more opportunities for homeownership.. Finally, the ethnic infrastructure that is built up, will allow for future growth of the community, thus paving the way for new residents..

Social networks, social capital, and racial segregation

Racially segregated neighborhoods have strong social networks. These networks have been shown to create social capital

Social capital

Social capital is a sociological concept, which refers to connections within and between social networks. The concept of social capital highlights the value of social relations and the role of cooperation and confidence to get collective or economic results. The term social capital is frequently...

, 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.. He continues by stating that this access to power and political positions, allows for social mobility.. 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..