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

Author

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  • Lepinteur, Anthony
  • Menta, Giorgia
  • Waltl, Sofie R.

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.

Suggested Citation

  • Lepinteur, Anthony & Menta, Giorgia & Waltl, Sofie R., 2025. "Equal price for equal place? Demand-driven racial discrimination in the housing market," Regional Science and Urban Economics, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:regeco:v:111:y:2025:i:c:s0166046225000067
    DOI: 10.1016/j.regsciurbeco.2025.104089
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    More about this item

    Keywords

    Racial discrimination; Housing; Randomised online experiment;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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