Ethnic Discrimination in the Private Rental Housing Market

This project analysed a significant yet under-researched issue: the nature and frequency of ethnic discrimination in the rental property market. Using gold standard paired testing methods, for the first time in Australia, this project assessed whether ethnic minorities (from the Indian sub-continent and Muslim Australians from the Middle East) were treated less favourably than Anglo-Australians when seeking rental housing, in order to inform policy debates about guaranteeing fair access to housing. Are there spatial variations across Sydney in discrimination? To what extent do key stakeholders perceive an issue of ethnic discrimination, and what remedies do they suggest?

Adequate and appropriately located housing is critical to the life chances of contemporary urban dwellers. Housing is a scare urban resource, and real estate markets (of freehold and renting) are the main mechanisms used in Australia to match demand and supply. There will be inequalities in the provision of housing reflecting socio-economic variation, and this is inevitable in capitalist market system. However, differential treatment in such markets, across ethnicity for example, generates unnecessary and avoidable uneven-ness. Racism is defined as attitudes and actions that give rise to unnecessary and avoidable inequalities in opportunities and resources across ethnicity, race, culture or religion (Paradies et al. 2009). Our findings clearly indicated differential treatment between Anglo-Australians and Indian-Australians / Muslim Middle Eastern-Australians. This differential treatment has the potential for unfair outcomes in accessing rental housing across ethnicity. As Australia's globally integrated capital cities continue to attract immigrants, more explicit attention to equity of access to such key resources as housing markets (which in turn mediate access to other social goods such as jobs, good schools, and liveable neighbourhoods), is essential to ensure Australia grows in a socially sustainable way.

Key Findings

• Anglo testers were 4.3 times more likely than either Indian or Muslim Middle Eastern testers to be offered an individual appointment to view the property.
• Anglo testers were more likely to record having contact with the agent during the inspection.
• Anglo testers were more likely to be asked about their housing needs, and to be told about other available housing.
• Agents were more likely to explain the application form to Anglo testers, and to provide them with additional information beyond the standard elements.
• Anglo testers were nearly 2.5 more likely to be contacted by the agent after the inspection.

Publications

Nelson, J. MacDonald, H. Dufty-Jones, R., Dunn, K. Paradies, Y. (2015). "Ethnic discrimination in private rental housing markets in Australia", in Rae Dufty-Jones and Dallas Rogers (Eds) Housing in Twenty-First Century Australia: People, Practices and Policies, Farnham, Ashgate, ISBN 978-1-4724-3113-4.

MacDonald, H. (2016). A white face can be a big help in a discriminatory housing market, The Conversation, Feb 1st.

MacDonald H., Nelson, J., Galster G., Paradies Y., Dunn, K. M. & Dufty-Jones R. (2016) "Rental Discrimination in the Multi-ethnic Metropolis: Evidence from Sydney", Urban Policy and Research, 34(4), 373-385 http://dx.doi.org/10.1080/08111146.2015.1118376.

Project Team

• Professor Kevin Dunn (Western Sydney University)
• Professor Heather MacDonald (University of Technology Sydney)
• Professor Yin Paradies (Deakin University)
• Dr Rae Dufty-Jones (Western Sydney University)

Project Partners and Funding

The project was funded by an Australian Research Council Linkage Grant.