Which practice is often considered discriminatory in real estate?

Redlining is a practice that has historically been deemed discriminatory in real estate, primarily because it involves the denial of services, such as mortgage loans and insurance, to residents of certain areas based on racial or ethnic composition. This practice systematically disadvantaged certain communities, particularly those predominantly inhabited by people of color, by making it difficult for them to access financing for home purchases or improvements. It effectively enforced segregation and perpetuated inequalities in neighborhoods, leading to long-term detrimental effects on wealth accumulation and community development for affected groups.

In contrast, other options such as spot zoning, while it may be controversial and have potential implications for community planning, does not inherently involve discrimination based on race or ethnicity. Commission sharing is a common practice intended to facilitate real estate transactions and is not discriminative in nature. Open house events are marketing strategies used by realtors to promote properties for sale and are generally open to anyone interested, reflecting inclusivity rather than discrimination.

Understanding redlining's impact is critical in recognizing how discriminatory practices can shape the housing market and contribute to ongoing inequalities.