“Steering” buyers to or from a particular neighborhood is a practice most often associated with the history of racial discrimination in real estate. The National Association of Realtors® (NAR) condemns the illegal practice and urges its members to “steer” away from it. Recently, though, the Department of Housing and Urban Development (HUD) weighed in on what constitutes steering.
In an April 24 letter to NAR signed by Assistant Secretary Fair Housing and Equal Opportunity Craig Trainor, HUD states that the sharing of neighborhood crime statistics is not a violation of racial discrimination laws under the Fair Housing Act. The letter cites a 2024 episode of the “Drive with NAR” podcast that told agents “giving your opinion on the safety of certain areas can lead to fair housing violations,” as well as a 2021 move by Realtor.com® and Redfin to remove crime data from their portals.
The letter does not only offer new guidance, it criticizes the practice of not giving information about a neighborhood’s crime statistics under concern about racial discrimination.
“Realtors® and listing services undermine fair housing when they refuse to provide prospective homebuyers or tenants with information about the safety of neighborhoods or the quality of local schools,” the letter reads, arguing on the basis that “fair housing” is also defined as “safe” and “decent” housing.
Any such withholding of information is also a violation of an agent’s fiduciary duty to their client that necessitates the “free flow of nonracial information,” the letter argues. It specifically affirms that real estate agents are allowed to discuss information about a neighborhood’s crime or schools with a consumer.
“If the (Fair Housing Act) made it illegal for real estate agents to discuss schools or crime in a neighborhood, grave First Amendment concerns would arise,” the letter claims.
As the Trump administration has deemphasized fair housing enforcement and eliminated or altered other guidance on the law, what does this letter mean for agents and brokers navigating these conversations with clients?
“We appreciate the ongoing dialogue and guidance from the administration on this important issue,” said NAR in response to an inquiry from RISMedia. “As the leading voice for real estate professionals, the National Association of REALTORS® brings deep expertise in fair housing and how it is applied in practice every day.”
“We are carefully reviewing the letter and its implications for our members and the consumers they serve,” the statement continued. “We look forward to continued engagement with the administration and other stakeholders to ensure clear guidance that supports both compliance and the ability of REALTORS® to effectively serve clients in every ZIP Code across the country.”
Letter of the law
During HUD Secretary Scott Turner’s Senate confirmation hearing in January 2025, Senator Jim Banks (R-IN) asked Turner if he supported a 2016 Obama administration rule claiming “it is unlawful discrimination for Realtors® and landlords to discuss a neighborhood’s crime rate with prospective renters and buyers.”
Turner made it clear he opposed the rule, saying “If I’m buying a home, or if I’m renting a home, I want to know about the crime rate. (…) I think full transparency and accountability is key. You make the decision if you want to live here or not, but to hide crime from a potential buyer or a potential renter is wrong.” This sentiment echoes throughout the HUD letter.
Trainor further claims in the letter that NAR has “added to this confusion” by discouraging association members from sharing neighborhood crime information, even on the premise that sharing such information could lead to “accidental steering.”
The letter cites a 2023 article from NAR intended to inform agents on how to handle questions about a neighborhood’s school district while avoiding “implicit bias.” The article’s conclusions, such as directing a client to a school’s district website for their answer, is described as “misguided advice” in the letter.
The letter takes a critical stance of “disparate impact” theory, or the premise that seemingly neutral actions (e.g., sharing information about a neighborhood’s crime statistics) can have the effect of reinforcing discrimination. Under this theory, discrimination is measured by result rather than intent, which the letter describes as “threaten(ing) civil rights liability without any showing of differential treatment or discriminatory intent.”
The letter further claims that racial steering requires discriminatory intent to qualify as steering, citing the Supreme Court’s definition of steering as “directing prospective homebuyers interested in equivalent properties to different areas according to their race.”
“(HUD) strongly urges (the) industry to revisit ethics training materials and reconsider public statements that stifle real estate agent speech related to nonracial neighborhood characteristics of vital importance to Americans deciding on where to live and raise their families,” the letter concluded.
