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Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market

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

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, 2025. "Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market," Department of Economics Working Paper Series 71231357, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:71231357
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    More about this item

    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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