Investigating the Relationship Between Real Estate Agents, Segregation, and House Prices: Steering and Upselling in New York State

Abstract

This article leverages a unique data set, recently developed regression methods, and qualitative interviews to investigate the multiple ways real estate agents produce housing inequality. We find that the clustering of agents in and around certain neighborhoods correlates positively with house prices. Our results also show a significant relationship between agent concentration and racial segregation. Our qualitative data reveal how agents engage in steering and upselling. The findings enhance our understanding of mechanisms in the housing market, and provide more empirical clarity on the role real estate agents play in asset and place inequality.