According to an article published in the New York Times, about 6 percent of real estate agents and brokers in the United States are Black—as compared to 14 percent of the general population. Black agents face discrimination from other agents, potential clients, and neighbors—sometimes with discomfiting and even dangerous results. Unsurprisingly, the Boston area follows suit: this article goes into detail about the experiences of several Black agents working in and around Boston, many of whom have had neighbors call the police when they arrive to show a house.
Nothing is simple and there are many factors contributing to this inequality, but the short version is this: racism in the real estate market has kept Black people from purchasing homes and has discouraged them from becoming agents. Even after the NAR formally stopped barring Black agents from membership and access to its perks in 1961, the organization opposed and actively lobbied against the 1968 Fair Housing Act, which outlawed housing discrimination.
There is a direct link between fair housing and Black agents working in the industry. Since, according to a study by the Brookings Institute, residences owned by Black people are on average priced 23 percent lower than homes owned by whites, agents working with Black homeowners tend to earn lower commissions. The National Association of Realtors (NAR) reports that Black agents earn on average one-third of what their white colleagues take home.
The National Association of Real Estate Brokers (NAREB) an organization founded in 1947 as an alternative for Black agents and brokers excluded from the NAR, recently joined HomeLight, a software platform for agents and lenders, to create a mentorship program designed to provide financial, educational, and career support for aspiring Black real estate agents. As part of the Black Real Estate Agent program, HomeLight and NAREB will help cover up to $5,000 of the onboarding costs for qualifying new agents, which may include classes, agent exams, licensing fees, marketing, and technology. Each program participant is paired with an experienced real estate counselor who serves as a mentor and advisor.
If you or someone you know could benefit from this program, details can be found here. And if you would like to hire a Black agent to assist you with your real estate needs, there are many ways to target your search. One of our favorites is Black at Compass, a nationwide affinity group. Or, just ask us and we can pair you with an excellent agent in your community! Every little bit helps.
