Does the neighbourhood of the dwelling and the real estate agency matter? Geographical differences in ethnic discrimination on the rental housing market

This study aims to investigate to which extent the ethnic and socio-economic composition of the neighbourhood is related to levels of discrimination in the rental housing market and how this is linked to theories of ethnic discrimination. Hereby, we divide the context into the neighbourhood of the dwelling and the real estate agency, using data from 2385 correspondence tests conducted among realtors in the city of Antwerp in Belgium. Regarding the neighbourhood of the dwelling, we find a tipping point at one third ethnic minorities whereafter ethnic discrimination decreases, which is in line with the perceived preference hypothesis and customer-based prejudice. A lower socio-economic composition relates to lower general invitation rates, which we describe as an elaboration of Putnam's hunkering down hypothesis. Regarding the neighbourhood of the real estate agency, a higher percentage of ethnic minorities leads to lower general invitation rates, also referring to the hunkering down hypothesis. The socio-economic neighbourhood composition of the agency, however, has no impact.

Automated summary

This study examines the relationship between the ethnic and socio-economic composition of a neighborhood and levels of discrimination in the rental housing market. The findings suggest that ethnic discrimination decreases after one third of the neighborhood population consists of ethnic minorities. Lower socio-economic composition is associated with lower general invitation rates. Additionally, a higher percentage of ethnic minorities in the neighborhood of a real estate agency leads to lower general invitation rates, while the socio-economic composition of the agency's neighborhood has no impact.