Housing Discrimination: Definition, Examples and Resources

Housing discrimination is when an individual is treated unfairly in the housing market due to factors including race or disability. Unfortunately, it’s a widespread problem, with more than 4 million instances of housing discrimination occurring in the U.S. every year, according to the National Fair Housing Alliance.

Here’s what to know about discrimination in housing, including what it is and the steps to take if you experience it.

What is housing discrimination?

Housing discrimination is the act of treating someone differently during the process of renting or buying a home, getting a mortgage, receiving housing assistance or engaging in other housing-related activities. The Fair Housing Act of 1968 was created to address discriminatory practices in the housing industry, including redlining.

Redlining is the practice of denying services to residents of certain areas based on their race or ethnicity. Redlining disproportionately impacted Black Americans, starting from the 1930s, as neighborhoods with high concentrations of Black residents were often marked in red on government maps and labeled as “risky investments.” This led to the systematic denial of financial services and opportunities, including home loans.

The Fair Housing Act set specific guidelines that are meant to help people receive fair and equal treatment in the housing market. The law prohibits housing discrimination because of:

→ Race

→ Color

→ National origin

→ Religion

→ Sex (including gender identity and sexual orientation)

→ Family status

→ Disability

Examples of discriminatory practices in housing

The following actions are considered discrimination, according to the U.S. Department of Housing and Urban Development (HUD), if they’re based on any of the characteristics listed above:

→ Refusing to rent or sell someone a home

→ Setting different terms or conditions for a home sale or rental

→ Charging a different sales price or rental rate

→ Evicting a tenant or a tenant’s guest

→ Refusing to provide a mortgage loan or other financial assistance for a dwelling

→ Imposing different interest rates or fees on a loan

For the full list of discriminatory practices under the Fair Housing Act, visit HUD.gov.

The Fair Housing Act applies to most types of housing, including private, public and federally funded housing. However, there are certain exceptions, such as owner-occupied buildings with four or fewer units, and housing through religious organizations and private clubs that restrict occupancy to their own members.

Housing discrimination examples

Refusing to rent to someone because of their race

Jennifer, a Black woman, speaks to a potential landlord through email about renting an apartment. In their emails, the landlord seems interested in renting to Jennifer. However, when they meet in person to view the apartment, the landlord seems reluctant to rent to her. Jennifer likes the apartment, so she fills out a housing application.

A few days later, Jennifer receives a letter saying her application was denied due to bad credit. This surprises Jennifer, because she knows she has a good credit score. She suspects that the real reason for her application denial is because of her race. Jennifer files a complaint through HUD, who investigates the claim and concludes that she was right. The landlord never even checked her credit and has a pattern of denying housing applications because of race and color.

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Steering someone to live in a specific location due to their race

James, a Latino man, meets with a real estate agent to discuss purchasing a house. When James expresses interest in a certain neighborhood, the real estate agent pushes back and recommends a different location where “there are more people who look like you.” When the agent takes James to see the house, James notices that the residents of the neighborhood are mostly Latino. James files a complaint through HUD, since steering someone to buy a house in a specific neighborhood because of race is a form of discrimination.

For additional examples, visit the HUD website.

Can you sue for housing discrimination?

Yes, you can sue your landlord for housing discrimination in federal or state court. You’ll likely need the help of a lawyer with experience in housing discrimination cases. A lawyer can also help you file a complaint with HUD or local fair housing agencies.

One way to decide whether to sue is to consider your goals for filing. For example, if you want to get a landlord to rent you a specific apartment, filing a complaint with a fair housing agency might be the best approach. If you want to seek compensation for the harm caused by a landlord’s discriminatory actions, a lawsuit might be worth considering.

Housing discrimination resources

There are various resources available for people who want to learn more about housing discrimination, including:

→ HUD. The HUD website is your hub for all things housing discrimination. You can read more about the Fair Housing Act, file a complaint and learn more about what to expect from the claim investigation process.

→ Local housing agencies. You can also find help through fair housing agencies in your state. Find local fair housing agencies here.

→ Legal aid organizations. You’ll want to find a lawyer if you decide to pursue a housing discrimination lawsuit. Start with legal assistance organizations in your area, which you can find by searching online for your state, and the terms “legal aid” or “legal assistance.” You can also try using this directory.

→ Consumer Financial Protection Bureau (CFPB). If you think that your mortgage lender discriminated against you, the CFPB is a great resource for help with credit discrimination.