Housing Discrimination Complaint Against Redfin in 10 Cities Including Baltimore
The National Fair Housing Alliance (NFHA) has filed a federal complaint against the Redfin national real estate firm, alleging the company’s online listing services unlawfully favor white consumers and neighborhoods compared to their nonwhite counterparts in Baltimore and nine other cities.
The NFHA said that Redfin’s minimum home listing price guidelines violate the Fair Housing Act by denying service to customers in largely segregated communities: "Redfin redlines communities of color in this digital age by setting minimum home listing prices in each housing market on its website under which it will not offer any real estate brokerage services to buyers or sellers,” reads the complaint, adding that Redfin conducts much of its services online and has few in-person offices. “By disproportionately withholding its services to homebuyers and sellers in these communities, Redfin disincentivizes homebuying within these communities, reduces housing demand and values, and perpetuates residential segregation."
The NFHA complaint names Baltimore as one of 10 cities where Redfin is more likely to offer service in “Extremely White” ZIP codes (over 70% white) and less likely to list homes in “Extremely Non-White” ZIP codes (over 70% not white). The other cities named are Philadelphia, Chicago, Detroit, Louisville, Milwaukee, and Memphis, as well as Kansas City, Missouri; Newark, New Jersey; and Long Island, New York.
The NFHA alleges that Redfin is over five times as likely to not offer services in Black neighborhoods in Baltimore, and more than six times as likely to offer its “Best Available Service” in white neighborhoods. The term “Best Available Service” refers to the most comprehensive level of service offered by the company, which connects buyers and sellers to Redfin agents and offers perks such as reduced listing commission fees and refunds.
Redfin has denied the allegations.
Baltimore Sun
October 30, 2020
