Work

Equal price for equal place? Demand-driven racial discrimination in the housing market

Year: 2025

Type: article

Abstract: We presented participants to an online study in Luxembourg with fictitious real-estate advertisements , tasking them to appraise the described properties. A random subset was also shown sellers’ surnames, strongly framed to signal their origins. All else equal, sellers with sub-Saharan African surnames were systematically offered lower prices — amounting to an appraisal penalty of EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000 for older and low-educated participants. We provide evidence that the appraisal bias likely passes through onto final sales prices and that it may be largely due to statistical rather than taste-based discrimination.

Source: Regional Science and Urban Economics

DOI: 10.1016/j.regsciurbeco.2025.104089

Authors: Anthony Lepinteur, Giorgia Menta, Sofie R. Waltl

Institutions: University of Luxembourg, Luxembourg Institute of Socio-Economic Research, Vienna University of Economics and Business, University of Cambridge

Language: English

Topic: Names, Identity, and Discrimination Research

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,600