People of color are like to pay higher upfront costs on their rental housing than their White counterparts, according to the latest Consumer Housing Trends Report published by Zillow Group (NASDAQ:Z, ZG).
Zillow found the typical Black, Hispanic and Asian American Pacific Islander (AAPI) renters reported spending $50 per rental application while White renters reported paying $35. Furthermore, 38% of Black and Hispanic renters said they needed to submit five or more applications before being able to secure a rental, compared to 21% of White renters.
Zillow also reported people of color were paying more on security deposits for their rental housing: 39% of Hispanic and 43% of AAPI renters paid at least $500 for their deposit, and 22% of Hispanic and 30% of AAPI renters paid at least $1,000.
“Monthly rent prices are nearly the highest they’ve ever been, and unfortunately for so many people, finding a place to rent comes at an even higher cost,” said Manny Garcia, a population scientist at Zillow. “We so often hear about the benefits of renting and the flexibility it offers, but disparities persist, and many renters of color aren’t granted the same mobility as others because of higher upfront costs.”
As a realtor this makes me very mad. I have had suspicions that my clients have been treated differently and it is hard to prove. I think we need more “Secret Shoppers” to help expose this wrongdoing. Then issue huge fines and let every landlord know this is unacceptable.
The thing missing from this article is why the differences? I can tell you it is not about color it is about credit score and other factors.