"For homes listed in the upper price tiers, 8.9% were listed privately in majority-white areas, compared to 5.1% in majority-non-white areas. Zillow claims that racial composition, not price, is the more salient influence for more private listings. According to Zillow, limiting who can view a property by listing it in a private listing network can reinforce existing patterns of segregation, especially in markets with a history of racial segregation."
"Chicago shows what can happen when parts of the housing market move into the shadows, Orphe Divounguy, a senior economist at Zillow, said in a statement. Private marketing might sound appealing, but it risks deepening segregation and limiting opportunity, moving us further from the fair and open housing market consumers deserve. The data show clear disparities, and good intentions are no longer an excuse for expanding digital redlining."
"While Zillow acknowledged that some brokerages and agents like to use private listing networks to test their sales price strategy and limit the number of days a property spends on the open market, the firm wrote that if brokerages lean into exclusive access' as a business strategy, it could risk decreasing fairness and transparency across the housing market."
Analysis of Urbanicity and the Census's 2019-2023 American Community Survey estimates shows private listings concentrate more in majority-white areas. For upper-tier homes, 8.9% were listed privately in majority-white areas versus 5.1% in majority-non-white areas. Racial composition correlates more strongly with private-listing prevalence than price. Private listing networks restrict who can view properties, can reinforce existing segregation patterns, and can limit access to housing opportunities. Increased use of private listings could amplify inequities. Some brokerages use private listings to test pricing or reduce public market exposure, which can decrease transparency and fairness.
Read at www.housingwire.com
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