What constitutes steering in real estate?

Steering in real estate refers to the practice of encouraging clients to buy or rent properties in specific neighborhoods based on their racial identity or other protected characteristics. This behavior is considered discriminatory and is prohibited under fair housing laws. The intent behind steering is often to segregate communities or limit the options available to certain demographic groups, which can perpetuate systemic inequality and prevent residents from finding homes in areas that may suit their needs or preferences.

The other choices do not accurately capture the essence of steering. For instance, refusing to show properties to specific demographic groups also represents discrimination, but it doesn't specifically involve the suggestion of neighborhoods based on race. Redirecting homeseekers based on financial status can be associated with economic discrimination but does not focus on racial or ethnic categories. Promoting neighborhood diversity, on the other hand, actually supports fair housing and inclusiveness, making it the opposite of steering.