Evidence of Racial Discrimination in Different Dimensions of Owner-Occupied Housing Search

This paper examines the incidence and extent of racial discrimination in various dimensions of owner-occupied housing search. Audit data for sales units (1980-90) from the Fair Housing Center of metropolitan Detroit is used in an ordered probit framework. Agents' own prejudices and the prejudices of their customers are shown to be significant in explaining discrimination. Results also indicate that white home seekers are steered toward more white and affluent neighborhoods. Copyright American Real Estate and Urban Economics Association.