An agent shows his customer, who is an Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called:

• A. Steering
• B. Blockbusting
• C. Redlining
• D. Escalation

Answer: (A)

Steering is guiding a buyer toward or away from certain neighborhoods based on protected characteristics like race or ethnicity. In this example, directing an Asian-American client to only neighborhoods that are predominantly Asian-American is steering because it limits the client’s housing options based on race. This infringes on fair housing laws, which prohibit steering and require equal opportunity for buyers to choose where they want to live. It’s different from redlining, which involves denying services in a area, or blockbusting, which exploits demographic changes to frighten owners into selling. Escalation refers to bidding tactics in a sale, not to discriminatory guidance of where to look for homes.