How to Recognize and Combat Housing Discrimination

BY LISA FANT

Housing discrimination can take many forms, from denying someone the opportunity to rent or buy a home based on their protected class, to imposing unfair terms or conditions on a sale or lease agreement. Not only is housing discrimination illegal, but it also undermines the values of fairness and equality that are central to the Realtor® Code of Ethics.

Fair housing laws ensure all individuals have the opportunity to live in the neighborhood of their choice, can access housing without fear of discrimination, and have the benefit of homeownership or rental housing. They can also promote diversity and inclusion in communities.

Discrimination can negatively impact the real estate industry as a whole, as it can damage the trust and confidence potential clients place in real estate professionals. It can significantly harm the reputation of the real estate sector and hinder Realtors® ability to succeed in their businesses.

According to the National Fair Housing Alliance’s 2021 Fair Housing Trends Report, in 2020, there were 28,712 reported complaints of housing discrimination in the U.S. Race-based complaints constituted 16.79% of complaints, while familial status discrimination accounted for 7.93% of complaints. Whether intentional or unintentional, discrimination can take many forms, from subtle bias to outright denial of housing opportunities.

One of the most significant steps you can take as a Realtor® is to be aware of protected classes. Under the Fair Housing Act , it is illegal to discriminate against individuals based on their race, color, national origin, creed/religion, sex, ancestry, familial status, or disability. The NJ Law Against Discrimination has additional protected classes and is “one of the most comprehensive anti-discrimination laws in the country,” according to the NJ Division on Civil Rights. In addition to the aforementioned protected classes, the NJ LAD also prohibits discrimination and bias-based harassment in gender identity or expression, marital or civil union status, domestic partnership status, pregnancy and breastfeeding, source of lawful income (Section 8 housing, State Rental Assistance, or Temporary Rental Assistance), and armed forces, according to the NJ LAD.

These laws protect people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing related activities. It’s most important to be familiar with these protected classes and be mindful of any actions or statements that could be construed as discriminatory.

Discrimination may not always be obvious, but it can often be identified by patterns in the housing market. For example, if certain neighborhoods consistently have lower levels of diversity, it could be a sign of discriminatory practices taking place. Since discrimination could be more subtle than outright bias or refusal to rent or sell property, it can also manifest in the language used in housing advertisements or during showings. According to the New Jersey Law Against Discrimination (LAD), ‘Discrimination includes advertising or making statements that may suggest a preference or limitation based on protected characteristics, such as stating that a property is not suitable for families with children, or to advertise a property in any way that discriminates against prospective tenants based on source of lawful income. For example, advertisements stating “No Section 8,” “Sorry, No CVERAP,” “TRA Not Accepted,” or “This property is not approved for Section 8” violate the NJ LAD, according to the NJ Division on Civil Rights.

New Jersey Realtors ® Equal Opportunity & Cultural Diversity Committee members were asked how they have incorporated DEI practices into their businesses:

I am incorporating diversity and inclusion into my business with the launch of a podcast gearing toward the inclusion of women into areas of real estate where most are intimidated to go, like investments, home construction, land development, and acquisitions with residential and commercial investments, and more.” –Yvonne, Maplewood

I actively seek out and engage with diverse real estate professionals, including agents, brokers, appraisers, inspectors, and contractors, to increase representation and equity in my referral network. Additionally, I continue to promote my involvement with and spread the word about the importance of joining the LGBTQ+ Real Estate Alliance.” –Christine, Brick

I prioritize open and honest conversations about diversity, equity, and inclusion with my clients, and continuously educate myself on DEI and Fair Housing. I maintain ethical standards and discourage negative behavior, while promoting Fair Housing and advising clients on associated penalties. My approach results in positive outcomes, repeat business, and referrals.” –Claudia Jean, Rahway

Realtors ® can play an active role in understanding and combatting discriminatory practices and creating an equal and diverse market with these tips:

1. Educate themselves and their clients about fair housing laws and their obligations under those laws.

2. Avoid making any statements or taking actions that may discriminate against individuals or groups based on their protected characteristics.

3. Use diverse and inclusive marketing practices to target all potential buyers and renters, regardless of their protected characteristics.

4. Ensure listed properties are marketed and shown to all potential buyers and renters in a non-discriminatory manner.

5. Report any suspected fair housing violations to the US Department of Housing and Urban Development (HUD) and/or with the New Jersey Division on Civil Rights

6. Participate in fair housing training and continuing education to stay up to date on fair housing laws and best practices.

Visit NJ Realtors ® Fair Housing & Diversity page or the National Association of Realtors ® Fair Housing website for more information, resources, classes, and training.