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

Abstract

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.