What is the term for the illegal practice of steering clients toward or away from certain neighborhoods based on their characteristics?

The term for the illegal practice of steering clients toward or away from certain neighborhoods based on their characteristics is known as steering. Steering occurs when real estate professionals guide prospective buyers toward or away from certain areas based on the racial, ethnic, or socioeconomic characteristics of individuals or neighborhoods. This practice is considered discriminatory and is prohibited under federal fair housing laws.

Steering negatively impacts community diversity and can reinforce segregation, which is why it is crucial for real estate professionals to treat all clients equally and provide them with access to all available housing options without bias. This understanding is essential for fostering an equitable housing market and ensuring compliance with fair housing regulations. The focus on steering highlights the importance of fair treatment and equal opportunity in real estate practices for all individuals, regardless of their background.