Discrimination in the Real Estate Industry: Survey Results

August 3, 2020

The United States has made long strides in its civil rights movement. But things are still far from perfect. In a recent survey by Zillow, the real estate giant reports that the disparity between white homeowners and black homeowners is staggering. 

The specifics are telling. According to the data from the Home Mortgage Disclosure Act, black applicants are denied a mortgage at a rate of 80% higher than white applicants.

Thought black homeownership is up since the recession of 2008, it has stalled out at 44% out of all homeowners.

Zillow survey data also revealed that black homebuyers are 59% more concerned about being discriminated against during the home buying process than white buyers (46%). This is with good reason, as the survey showed that lenders deny mortgages to black applicants at 1.8 times the rate of white applicants. The denial rate for conventional loans is 2.2 times higher for black people compared to white people. This is due in part to credit history playing a role in the decision making for lenders. 

Discrimination is rampant in many aspects of our lives, even when it comes to looking for a dream home. Something that needs to be addressed by companies within the real estate industry. 

August 3, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Developer Generic Background
Product Roundup: Hemnet, Green Acres, FazWaz, Property Sorted and Leboncoin

Here are the product and services updates we've spotted coming from real estate marketplaces around the world this week...  ...

Read More
Affordability Calculators 1 1
Affordability Fears Are Growing – Are Real Estate Portals Paying Attention?

Only around 40% of listings on Zillow are affordable. Or, to put it another way, only around 40% of properties...

Read More
People Roundup Hero Image 3 April 25 2
People on the Move Roundup: REW, ImmoScout24 and REA India

This week's roundup of real estate marketplace comings and goings features executives on the move in Canada, Germany and India......

Read More
Cooperrocketacq 3
Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United...

Read More

Editor's Pick