Real estate agents are supposed to help you find a home—but what if their role goes deeper? From steering clients to certain neighborhoods to facing discrimination themselves, agents are both influencers and victims of systemic bias.
In this post, we’ll explore:
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How agents of color face pay disparities and racism
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Why white agents still dominate high-value markets
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What this means for buyers and sellers today
The Racial Pay Gap in Real Estate
Here’s the uncomfortable truth: Agents earn commissions based on home prices, and home prices are tied to race.
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White agents often work with white clients in high-value neighborhoods, earning bigger commissions.
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Agents of color are frequently pushed into lower-value markets, where homes sell for less—and so do their paychecks.
One agent of color in the study was even locked out of a listing by a developer who refused to work with him. Another had cops called on him during an open house. The barriers aren’t just economic; they’re outright discrimination.
Why This Affects Buyers
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Limited Options
If agents steer clients toward “familiar” neighborhoods, buyers might never see homes in areas that could offer better value or opportunities. -
Reinforced Segregation
When agents (consciously or not) avoid showing homes in certain areas, it keeps the old redlining boundaries alive. -
Fewer Advocates
Buyers of color working with agents of color may face extra hurdles—like lower appraisals or lender skepticism—that white buyers and agents don’t.
What Needs to Change
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Diversify the Industry: More agents of color in all markets can help break stereotypes.
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Train Against Bias: Agencies need to teach agents how to recognize (and stop) steering.
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Support Fair Housing Laws: Policies that punish discrimination are crucial, but enforcement is spotty.
Watch the Full Conversation
Hear these insights directly from the research:
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