What is steering in real estate?

Steering in real estate refers specifically to the practice of directing homebuyers towards or away from certain neighborhoods based on their race, ethnicity, religion, or other protected characteristics. This is considered a form of discrimination and is illegal under the Fair Housing Act.

The emphasis on directing buyers rather than promoting representation or evaluating listings highlights how individuals may be influenced to make housing choices based on biased reasoning. Steering can lead to significant negative impacts on community diversity and integration, reinforcing segregation and limiting opportunities for certain groups.

The other choices do not accurately describe steering. Encouraging equal representation in neighborhoods would instead promote fairness and inclusivity, while evaluating property listings pertains to assessing market value rather than influencing buyer behavior. Promoting new construction projects relates to developing housing options and does not involve steering homeowners based on discriminatory practices. Understanding steering is crucial for real estate professionals to ensure compliance with fair housing laws and to foster equitable treatment in housing transactions.