What can be a consequence of steering in real estate?

Steering in real estate refers to the practice where agents guide prospective buyers toward or away from certain neighborhoods based on their race, ethnicity, or other protected characteristics. This unethical practice often leads to the segregation of neighborhoods, as it perpetuates discriminatory housing patterns.

When steering occurs, it can create homogenous communities that do not reflect the diverse populations of the surrounding areas. This segregation can result in unequal access to resources like quality schools, healthcare, and employment opportunities. Furthermore, it can contribute to long-term social and economic disparities among different groups, worsening the effects of inequality in society.

In contrast, the other choices suggest positive outcomes that are inconsistent with the practice of steering. Steering does not enhance property values or improve market competition, as it may limit the willingness of diverse buyers to engage with the market comprehensively. Community engagement would also typically be diminished as a result of steering, rather than increased, because it discourages interaction and integration among different population groups.