What does "steering" in real estate refer to?

Steering refers to the practice of directing individuals towards or away from certain neighborhoods based on demographic factors, such as race, ethnicity, or religion. This term is often discussed in the context of fair housing laws, which aim to ensure that everyone has equal access to housing opportunities without discrimination. By encouraging renters to select areas based on these demographics, steering perpetuates residential segregation and undermines the principles of equal opportunity in housing.

Understanding steering is crucial for real estate professionals, as it directly relates to their ethical responsibilities and legal obligations to promote fair housing. Recognizing the significance of this practice helps agents avoid discriminatory behaviors and fosters a more inclusive community. This awareness ensures agents comply with laws such as the Fair Housing Act, which prohibits such discriminatory practices, thereby supporting diversity and preventing systemic inequality in housing markets.