Leasing License Practice Exam

What type of discrimination involves steering prospective tenants to certain neighborhoods based on race?

1. Redlining

2. Blockbusting

3. Racial Clustering

4. Rental Discrimination

The correct answer is: Racial Clustering

Steering prospective tenants to certain neighborhoods based on race is specifically referred to as racial clustering. This practice involves guiding individuals or families toward specific areas that are predominantly inhabited by their racial or ethnic group, which is a form of discrimination that can perpetuate segregation and limit housing choices for individuals. Racial clustering reflects a systemic issue within the rental market, where real estate agents or landlords may direct people to certain neighborhoods under the assumption that they would prefer to live among others of the same race, thus reinforcing societal divides. It is important to recognize that such practices are prohibited under fair housing laws, which seek to promote equal opportunity in housing for all individuals regardless of race or ethnicity. In contrast, redlining refers to the historical practice of denying services, such as home loans or insurance, to residents in certain neighborhoods based on racial or ethnic composition. Blockbusting involves persuading homeowners to sell their properties at lower prices by instilling fear that racial or ethnic minorities will soon move into the neighborhood, leading to further discrimination. Rental discrimination broadly encompasses numerous unfair practices in housing but is not specific to the steering of tenants based on race, which makes racial clustering the more precise answer in this context.