People of color face higher rental costs than White Americans, Zillow finds

According to Zillow, black Americans and Hispanics pay extra money to secure rental housing in the U.S. compared to whites.

In a report this week, the real estate data company said that regardless of race, Americans paid an average of $ 700 in security deposits when renting an apartment. However, black tenants paid $ 750, while white tenants paid $ 600. White tenants typically paid $ 50 for a rental application fee while black Americans paid $ 65; Hispanic applicants paid $ 80 and Asian Americans paid $ 10. People of color also tend to apply for more rentals to find a place to live and pay more in related rates than white tenants, Zillow concluded.

Zillow attributed the higher rates and number of housing applications to color tenants partially at his age, noting that they are usually two years younger than the average white tenant. White Americans are also more likely to rent in rural and midwestern areas, which are typically cheaper.

But racial disparities in rental costs also suggest that many landlords often violate federal law, said Dan Corbitt of Housing Opportunities Made Equal, a New York State nonprofit that fights discrimination in housing. housing. For example, some homeowners may circumvent fair housing laws by charging higher application rates for people with lower credit ulcers, which tends to disproportionately affect lower-income tenants.

Zillow said he decided to study price discrimination among tenants for lawmakers to work out a better housing policy.

“Everyone deserves to find a home they love,” Zillow researcher Manny Garcia, who produced the report, told CBS MoneyWatch. “Still, many people looking for housing face barriers seemingly at all times as they rent, buy, get a mortgage and more.”

Dropping them online

Given the long-standing legacy of racism in U.S. housing, such as redliningNikitra Bailey of the National Fair Housing Alliance said some landlords continue to practice “rooted in this unfounded race-risk association” in which people of color are considered to pay rent consistently.

Corbitt and other housing advocates said housing bias persists in part because people who may be discriminated against often do not report it, adding that victims often never find out they are paying higher fees or they face a higher rejection rate than white tenants, he added. .

Anyone who has paid more money for housing during an unequal application process can sue the provider and they will be reimbursed, Corbitt said. However, this often involves a lengthy and costly legal battle.

“For most people, especially people who are desperate to get a roof over their family’s head, it’s really not an option,” he said.

However, it is important for rental applicants to report discrimination because it allows agencies such as the U.S. Department of Housing and Urban Development (HUD) to prosecute criminals, Bailey said.

HUD has the legal authority to stop even homeowners from stopping unfair practices.

“And once you go after the bigger fish, the rest fall in line,” Corbitt said.

People of color seem to be paying more upfront costs at some point rents have skyrocketed across the country. Average monthly rent increased 10% in 2021 and is expected to grow another 7% this year, according to Realtor.com.

Rents are rising because the U.S. has not built enough homes, and millions of millennials are now ready to move to their own place, creating high demand but very little inventory, said Redfin chief economist Daryl Fairweather. recently explained 60 Minutes.

Rental costs are just one of the barriers people of color face in finding housing. A separate report from Zillow found that black Americans are denied a mortgage 84% more often than white applicants. Black Americans said a low credit score often prevented them from getting a home loan, according to Zillow.