{"id":56806,"date":"2017-02-22T09:01:03","date_gmt":"2017-02-22T17:01:03","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=56806"},"modified":"2020-10-06T19:40:23","modified_gmt":"2020-10-07T02:40:23","slug":"minority_homebuyers_market_survey","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/minority_homebuyers_market_survey\/","title":{"rendered":"Nearly Half of Minority Homebuyers in a 2016 Housing Market Survey Felt They May Have Been Discriminated Against When Trying to Buy a Home"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Among 2,000 people who bought or tried to buy a home last year, 569 identified themselves as Latina\/Latino, East or South Asian American, African American, Arab American or Native American. Of those minority buyers, nearly half (48.8%) felt that home sellers or sellers\u2019 real estate agents were less eager to work with them because of their race. Twenty-eight percent of white people felt the same. These results come from a Redfin-commissioned survey conducted by SurveyGizmo in December 2016. \u00a0It reached more than 3,000 people&#8211;of which 94 were Redfin customers&#8211;who tried or succeeded to buy or sell a home in 2016, or plan to this year. Respondents spanned 11 major metro areas.<\/span><\/p>\n<figure id=\"media-56807\" class=\"align-none\"><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/02\/wordpress_discrimination.png\" alt=\"wordpress_discrimination\" \/><\/figure>\n<p><span style=\"font-weight: 400;\">The findings weren\u2019t isolated to just one race or even to certain parts of the country. To better understand this data, we spoke with Redfin real estate agents nationwide about what they\u2019ve seen and heard, and about what their customers experienced specifically in 2016. The agents we spoke to about this survey rarely observed blatant acts of discrimination. The clearest example of racism was a buyer\u2019s agent\u2019s account of an appraiser making a derogatory comment about an ethnic group \u201ctaking over the neighborhood.\u201d The rest described situations in which the customer or the agent herself had a feeling or suspicion that the seller or seller\u2019s agent was driven by bias when rejecting an offer or backing out of a deal. In each of these cases, however, the seller or seller\u2019s agent had a reasonable and fair explanation for their decision. <\/span><br \/>\n<span style=\"font-weight: 400;\">According to the survey, 67 percent of Arab-American homebuyers felt that sellers or their agents were less eager to work with them because of their race or ethnicity. The sample size for this group was too small to be statistically significant; only 18 respondents indicated they were Arab American. But we feel this is worth highlighting in part because our agents also cited instances of Arab-American discrimination. <\/span><\/p>\n<h3><strong>Despite misgivings, U.S. neighborhoods are getting more diverse<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This is the first time we\u2019ve asked these questions, so we can\u2019t report a trend, but the results come at a time when neighborhoods across the U.S. are becoming more integrated. Redfin measured neighborhood diversity across the U.S., using the most recent <\/span><a href=\"https:\/\/www.census.gov\/\"><span style=\"font-weight: 400;\">Census data<\/span><\/a><span style=\"font-weight: 400;\">, from 2015, and found that 32 percent of Americans lived in diverse neighborhoods in 2015, up from 23 percent \u00a0in 2000. <\/span><\/p>\n<figure id=\"media-56808\" class=\"align-none\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/02\/wordpress_neighborhood_diversity.png\" alt=\"wordpress_neighborhood_diversity\" \/><\/figure>\n<h3><strong>How technology helps make the real estate industry more equal<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Just as neighborhoods evolve over time, so does the real estate industry. The internet has already begun to act as an equalizer. It enables a person of any color to find out about homes for sale in every neighborhood, rather than relying exclusively on a real estate agent to show them available homes. We believe that when homebuyers and sellers find an agent online instead of through a family or friend\u2019s referral, they are more likely to hire one based on her experience and expertise than on a shared background. This also gives everyone, regardless of race or socioeconomic background, a better shot to build a successful career in real estate, leading to greater diversity in the profession. <\/span><br \/>\n<a href=\"https:\/\/redfin.com\/blog\/2016\/10\/race-ethnicity-and-gender-equality-at-redfin.html\"><span style=\"font-weight: 400;\">Redfin recently wrote<\/span><\/a><span style=\"font-weight: 400;\"> about the diversity of its employees and its efforts to recruit a more diverse workforce. Overall, Redfin\u2019s field organization is more diverse than the industry average, but still not reflective of the general population. The company\u2019s field organization is 77 percent white, compared to the National Association of Realtors, which is 85 percent white. Only 1 percent of U.S. Realtors are black, compared to 6 percent of Redfin agents. As we stated in this report, in an industry that\u2019s always recruiting new agents, the pool of untapped talent is massive.<\/span><br \/>\n<span style=\"font-weight: 400;\">Of course, discrimination is not a new problem in the real estate industry. As a small start toward modern solutions, we hope to use the information in this report to foster conversations within Redfin and with our colleagues in the industry. We are exploring ways to better advocate for our customers in these situations and strategies to eliminate the potential for bias in the home-buying and selling processes. It is our hope that together, and with the help of technology, we can become an industry in which discrimination and racism have no place. <\/span><\/p>\n<h3><strong>Method and data<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In December, Redfin commissioned SurveyGizmo to survey 3,300 people who bought or sold in the past year, tried to buy or sell in the past year or planned to buy or sell in the next year. The respondents spanned the following 11 metro areas: <a href=\"https:\/\/redfin.com\/city\/1073\/MD\/Baltimore\" target=\"_blank\" rel=\"noopener noreferrer\">Baltimore<\/a>, <a href=\"https:\/\/redfin.com\/city\/1826\/MA\/Boston\" target=\"_blank\" rel=\"noopener noreferrer\">Boston<\/a>, <a href=\"https:\/\/redfin.com\/city\/29470\/IL\/Chicago\" target=\"_blank\" rel=\"noopener noreferrer\">Chicago<\/a>, <a href=\"https:\/\/redfin.com\/city\/30794\/TX\/Dallas\" target=\"_blank\" rel=\"noopener noreferrer\">Dallas<\/a>, <a href=\"https:\/\/redfin.com\/city\/5155\/CO\/Denver\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">Denver<\/a>, <a href=\"https:\/\/redfin.com\/city\/11203\/CA\/Los-Angeles\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">Los Angeles<\/a>, <a href=\"https:\/\/redfin.com\/city\/30772\/OR\/Portland\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">Portland<\/a>, OR, <a href=\"https:\/\/redfin.com\/city\/16904\/CA\/San-Diego\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">San Diego<\/a>, <a href=\"https:\/\/redfin.com\/city\/17151\/CA\/San-Francisco\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">San Francisco<\/a>, <a href=\"https:\/\/redfin.com\/city\/16163\/WA\/Seattle\/filter\/include=forsale+mlsfsbo+construction\" target=\"_blank\" rel=\"noopener noreferrer\">Seattle<\/a> and <a href=\"https:\/\/redfin.com\/city\/12839\/DC\/Washington-DC\/filter\/sort=lo-distance,include=forsale+mlsfsbo+construction,status=active,viewport=38.958690713085936:38.85569388691406:-76.96820614921874:-77.10553525078124,no-outline,geo-address=Washington%0C+DC%0C+USA\" target=\"_blank\" rel=\"noopener noreferrer\">Washington, D.C.<\/a><\/span><br \/>\n<i><span style=\"font-weight: 400;\">Table: Count of survey respondents who identified their race<\/span><\/i><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">White\/Caucasian<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1350<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Latino\/Latina<\/span><\/td>\n<td><span style=\"font-weight: 400;\">170<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">African American<\/span><\/td>\n<td><span style=\"font-weight: 400;\">139<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">East Asian American<\/span><\/td>\n<td><span style=\"font-weight: 400;\">112<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">South Asian American<\/span><\/td>\n<td><span style=\"font-weight: 400;\">80<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Arab American<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Native American<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">1,919 people who identified their race responded to the question, \u201cDuring your homebuying process, did you ever feel that sellers or their agents were less eager to work with you because of your ethnicity or race?\u201d <\/span><br \/>\n<span style=\"font-weight: 400;\">Block group data came from the 2015 5-year American Community Survey and the 2000 U.S. Census. Each block group defines its own \u201cneighborhood\u201d in this study. <\/span><br \/>\n<span style=\"font-weight: 400;\">To measure neighborhood diversity, Redfin used the Gini-Simpson index, representing the chance someone\u2019s neighbor will be a different race than themselves:<\/span><br \/>\n<img decoding=\"async\" class=\"\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/02\/wordpress_equation-1.png\" alt=\"wordpress_equation\" width=\"202\" height=\"50\" \/><br \/>\n<span style=\"font-weight: 400;\">Races came from the U.S. Census, and they were exhaustive, adding up to 100% of the population of each block group. Races included: other, white, black, asian and hispanic or latino. <\/span><br \/>\n<span style=\"font-weight: 400;\">Areas were defined as \u201cdiverse\u201d if a block group\u2019s Gini-Simpson index was at least 50.<\/span><br \/>\n&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>These results come from a Redfin-commissioned survey conducted by SurveyGizmo in December 2016 that reached more than 3,000 people.<\/p>\n","protected":false},"author":13194,"featured_media":56814,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[43,53],"tags":[15,70],"coauthors":[],"class_list":["post-56806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-equality-policy","category-race-real-estate","tag-diversity","tag-home-buyer-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - 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He wants to live in a city where cars have nerf bumpers and big trees are planted in parking spots. Before Redfin, he was at Gehl Architects in Copenhagen, helping make streets more people-friendly in a bunch of cities all over the world. Redfin is a full-service real estate brokerage that uses modern technology to make clients smarter and faster. 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