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

B-Tier
Journal: Regional Science and Urban Economics
Year: 2025
Volume: 111
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:regeco:v:111:y:2025:i:c:s0166046225000067
Journal Field
Urban
Author Count
3
Added to Database
2026-01-25