Analysis: African-Americans pay more for rent, especially in white neighborhoods

For many years, housing discrimination against African-Americans and other minorities was legal, open, and common throughout the U.S. Racial covenants, openly advertising for white tenants, government policies restricting access to credit for minorities, and threats of violence greatly restricted the housing choices available to minority owners and renters.

Although the Supreme Court declared the most egregious practices unconstitutional many years ago, racial attitudes still play a major role in housing market outcomes.

A recent study by Patrick Bayer, from Duke University, and his coauthors have established convincingly that African-Americans pay higher sales prices than whites for identical units in the same neighborhood. Understanding racial rent differences is even more important since…

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