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A new study has revealed that American landlords have a racial bias when it comes to renting applications, according to BNN Bloomberg.
A paper from the National Bureau of Economic Research found that landlords are less likely to respond to applicants who have Black American or Latino-sounding names. Reporters say it's the largest study of its kind to date.
Researchers used fake renters with names usually associated with white, Black, or Latino identities and tracked over 25,000 interactions across the United States. Here's are their findings:
- Renters with white-sounding names received a 60% response rate
- Renters with Latino-sounding names received a 57% response rate
- Renters with Black-sounding names received a 54% response rate
Analysts also found Black renters faced the most discrimination and constraints in Chicago, Los Angeles, and Louisville, Kentucky.
"African American and Hispanic/LatinX renters continue to face discriminatory constraints in the majority of U.S. cities," according to the study. "Housing discrimination can have a critical impact on residential location choices and access to opportunity."
BNN Bloomberg pointed out that a similar trend exists in the buyer's market. Research says homes in Black and Latino neighborhoods are constantly undervalued by appraisers, "further widening the racial wealth gap."