Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market

Anthony Lepinteur, Giorgia Menta and Sofie Waltl

Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: We presented participants to an online study in Luxembourg with fictitious real-estate advertisements, tasking them to appraise the described properties. A random subset was also shown sellers’ surnames, strongly framed to signal their origins. All else equal, sellers with sub- Saharan African surnames were systematically offered lower prices – amounting to an appraisal penalty of EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000 for older and low-educated participants. We provide evidence that the appraisal bias likely passes through onto final sales prices and that it may be largely due to statistical rather than taste- based discrimination.

Date: 2025
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Related works:
Journal Article: Equal price for equal place? Demand-driven racial discrimination in the housing market (2025)
Working Paper: Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market (2023)
Working Paper: Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market (2023)
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