Steering
Steering is the illegal practice of directing prospective homebuyers toward or away from certain neighborhoods based on their race, ethnicity, religion, or other protected characteristics. This discriminatory practice violates federal fair housing laws and limits buyers' housing choices based on prejudicial assumptions.
Example
“The agent was fined for steering by showing only properties in certain neighborhoods based on the clients' race.”
Memory Tip
Like steering a car in the wrong direction - agents illegally steer buyers away from areas they should freely choose.
Why It Matters
Steering perpetuates housing segregation and denies people equal access to housing opportunities, making it a serious civil rights violation that can result in significant legal penalties for real estate professionals.
Common Misconception
Some believe steering only occurs when explicitly mentioning race or ethnicity, but it can also happen through coded language or assumptions about what neighborhoods someone would "prefer" or "fit into."
In Practice
If a real estate agent suggests that a Latino family would be "more comfortable" in a predominantly Hispanic neighborhood without the family expressing such a preference, this constitutes illegal steering regardless of the agent's intentions.
Etymology
From the verb 'to steer' meaning to guide or direct, describing how agents illegally guide buyers toward or away from certain neighborhoods.
Common Misspellings
Compare today's mortgage rates
More in real estate
Other real estate terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.