Understanding Fair Housing: The Foundation of Ethical Real Estate
As a realtor, I believe it is crucial to see people for who they are, not what they are. Fair housing laws exist to ensure that every individual has an equal opportunity to find a home they love, free from discrimination. Housing is more than just a place to live—it’s the foundation for stability, opportunity, and generational wealth. By following fair housing laws, we ensure that everyone has access to the same opportunities, regardless of their background.
What Is Fair Housing?
The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, was designed to eliminate housing discrimination and promote residential integration. It protects seven federally recognized classes:
- Race
- Color
- National origin
- Religion
- Sex (including gender identity and sexual orientation)
- Familial status (presence or potential presence of children in a household)
- Disability
In Missouri, ancestry is an additional protected class, and many local jurisdictions have extended protections to include veteran status and source of income (e.g., housing vouchers, social security, or disability benefits).
Who Must Follow Fair Housing Laws?
Fair housing laws apply to all aspects of real estate, including landlords, property managers, mortgage lenders, homeowners’ associations (HOAs), and real estate professionals. If you are selling a home, you cannot reject an offer based on a buyer’s membership in a protected class. Similarly, realtors cannot “steer” clients toward or away from certain neighborhoods based on demographics.
Missouri has taken steps to remove outdated and restrictive language from real estate documents. Last year, Missouri realtors supported a bill that allows restrictive covenants — some of which historically included discriminatory clauses — to be removed from property records. While racially restrictive covenants were deemed unenforceable by the Supreme Court in Shelley v. Kraemer (1948), this change ensures that outdated language can be formally removed from official documents.
A Look Back: The History of Housing Discrimination
The U.S. government once enforced racial segregation in housing through policies such as redlining, where neighborhoods deemed “undesirable” (often minority communities) were denied government-backed loans. This systematic discrimination led to disparities in homeownership, wealth accumulation, and access to quality education and services.
Even though redlining was outlawed, its effects persist today. Many formerly redlined neighborhoods still face economic struggles due to decades of disinvestment. While the Fair Housing Act has helped to dismantle these barriers, recovery is a slow process, and racial disparities in homeownership continue.
Empowering Clients, Not Steering Them
As realtors, our role is to provide clients with information and resources—not to influence their decisions based on our own biases. Instead of offering personal opinions, we encourage clients to conduct their own research and consider factors like:
- Community Atmosphere: Drive through neighborhoods at different times to get a feel for the area. You can also review websites that share information on crime or 911 calls in an area
- HOA Rules: Review regulations to ensure they align with your lifestyle preferences.
- Property Conditions: Look at maintenance standards, including lawns, vehicles, and public spaces.
- Practical Concerns: Consider commute times, proximity to major roads, and noise levels.
By focusing on the client’s priorities rather than imposing our own, we ensure that their housing decisions are informed and unbiased.
Recognizing and Preventing Implicit Bias
Fair housing violations aren’t always intentional. Disparate impact refers to policies that appear neutral but disproportionately affect certain groups. For example, tenant screening policies that exclude all individuals with a criminal record may disproportionately impact minority applicants. Instead, landlords should create clear guidelines. Example: screening only for violent offenses rather than blanket exclusions.
As realtors, we must continually educate ourselves and challenge our own biases to ensure we uphold fair housing principles. Everyone deserves equal access to housing, and it is our ethical duty to make that a reality.