Which practice is illegal under fair housing laws that involves guiding potential buyers or renters to certain areas based on their race or ethnicity?

Steering is the practice that refers to the illegal guidance of potential buyers or renters towards or away from certain neighborhoods based on their race, ethnicity, or other protected characteristics. This action is considered discriminatory because it seeks to influence individuals' housing choices based on their identity rather than their preferences or financial qualifications.

The Fair Housing Act prohibits such practices to ensure that all individuals have equal opportunity to live in any community they choose, promoting diversity and preventing segregation in housing. By steering individuals, a real estate professional may perpetuate segregation and limit housing options for people based on their race or ethnicity, which is explicitly against fair housing laws.

The other terms mentioned do relate to concepts of housing inequality but do not specifically describe the act of guiding individuals based on race or ethnicity in housing transactions. Segregation refers to the separation of groups, often enforced by social norms or laws, while exclusion generally indicates preventing certain groups from accessing particular services or areas. Discrimination is a broader term that encompasses various illegal practices in housing but does not pinpoint the specific action like steering does. Thus, steering accurately captures the illegal nature of this guided practice under fair housing laws.