People of color face steep hurdles
As the U.S. economy struggles to maintain a positive footing, the housing and renting market has seen a sustainable increase in mortgages, interest rates on loans, and other fees that come with buying a house. Black, Latinx, and Asian-Americans Pacific Islanders (AAPI) have reported that they pay higher upfront costs to secure property or house rentals.
According to a report by Zillow, Black, Latinx, and AAPI renters report paying application fees 43% higher than those by White renters. It was also reported that Black and Latinx renters are nearly twice as likely to submit five or more applications for properties. In 2022 the average Black renter paid 50 dollars for each application, while their white counterparts paid 35 dollars for the same application.
Application fees were the least of the worries of all three groups as they faced security deposits of 1,000 or more for the rentals. It's reported that 22% of Latinx and 30% of AAPI pay at least $1,000, and 13% of Black renters $1,000 or more. While that number seems low for Black renters, it's because 73% of Black renters are denied for properties after the initial try for each property application.
“Monthly rent prices are nearly the highest they've ever been, and unfortunately for so many people, finding a place to rent comes at an even higher cost.” said Manny Garcia, a population scientist with Zillow in discussing the disparities that renters of color may face. We so often hear about the benefits of renting and the flexibility it offers, but disparities persist, and most renters of color aren't granted the same mobility as others because of higher upfront costs.”
Rasheedah Phillips, director of PolicyLink, a group which focuses on economic equity, explained in a 2022 Guardian article how disparities and racism play a part in the housing market in California.
“Longstanding patterns of racial segregation are deepening. Low-income Black and brown households are being pushed out of their neighborhoods … and confined to the outskirts of what are otherwise prosperous cities.” Phillips said.
“In California, incomes are not keeping up with rents, and we’re not building housing for people with low incomes,” said Sarah Treuhaft, PolicyLink’s vice president of research. She said that more than 6 million homeowners and renters are reportedly behind on payments, ranging from financial difficulties or the lasting effects of the pandemic.
With the economy being unsteady, experts advise that people of color should report any and all discrimination practices they experience while trying to rent or purchase homes.
