Do renter protection policies reduce rental housing discrimination?

Research in Contemporary Economic Policy indicates that well-intentioned renter protection policies may actually increase discrimination against certain minority races and ethnicities.

The research applies to a policy implemented in Minneapolis that limits the use of background checks, eviction history, and credit scores on rental housing applications. Investigators submitted fictitious email inquiries to publicly advertised rentals using names manipulated on perceived race and ethnicity before and after this policy was implemented.

After the policy was implemented, discrimination against African American and Somali American men increased. Also, discrimination increased in Minneapolis relative to its “twin city” St. Paul, where the policy was not in effect.

Although ads requiring specific credit scores or banning applicants with criminal records fell dramatically after the policy went into effect, restricting information on individual applicants appeared to have caused landlords to rely more on stereotypes and increased discrimination against Somali American and African American renters. In most cases, the landlord simply did not respond to inquiries from such applicants.

“Policymakers in Minneapolis aimed to expand access to rental housing for individuals previously excluded due to criminal records, credit history, or income. Our research suggests that while the policy may have lowered these specific barriers, limiting the information available to landlords increased discrimination based on race and ethnicity,” said corresponding author Deborah Rho, MA, PhD, of the University of St. Thomas.

URL upon publication: https://onlinelibrary.wiley.com/doi/10.1111/coep.12704

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First published in 1982, Contemporary Economic Policy publishes scholarly research and analysis on important policy issues facing society. The journal provides insight into the complexity of policy decisions and communicates evidence-based solutions in a form accessible to economists and policy makers. Contemporary Economic Policy provides a forum for debate by enhancing our understanding of key issues and methods used for policy analysis.

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