*According to Zillow’s latest Consumer Housing Trends Report, Black and Latino renters typically pay more in security deposits and applications fees than white applicants.
The typical white renter pays $35 in application fees, while Black, Latinx, and Asian renters all reported paying a minimum of $50 on application fees.
Here’s more from the report:
Black and Latinx renters typically reported submitting one more application than white and Asian renters: The typical white or Asian renter submitted 2 applications, while Black and Latinx renters typically reported submitting 3. Black and Latinx renters were also almost twice as likely to report submitting 5 applications or more (38% of Black and Latinx renters report submitting 5 or more, compared to 21% of white renters).
READ MORE: 25 U.S. Cities Where Rent Is Too Damn High for a 2-bedroom Apartment
The monthly mortgage payment on the typical U.S. home rose 31% in the last year (the largest one-year climb in at least 22 years.) Find out why these payments are rising at such an extreme pace.
— Zillow (@zillow) March 23, 2022
Additionally, security deposits are also tied to race.
Per the report: “Renters of color, renters in urban & suburban areas, and renters in geographic regions with more competitive rental markets tend to put down larger deposits.”
“Rents grew more last year than any year on record, forcing many renters to look for a more affordable option. According to Essence, about 2 in 5 renters who moved in the past year said a rent hike influenced their decision to move,” Manny Garcia, a population scientist at Zillow, said in the report.
“Renters typically do not have much of a financial cushion, and the cost of finding a new place to live can be an expensive burden. Regrettably, renters of color are especially likely to experience rising rents, and when they shop for a new rental, generally report higher upfront costs, restricting the mobility that is often held up as a benefit of renting,” Garcia continued.
Read the full report here.
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