New empirical evidence has confirmed that renter protections policies can reduce some of these barriers to accessing rental housing. At the same time, they could inadvertently raise discrimination against some racial and ethnic groups. Deborah Rho, MA, Ph.D., University of St. Thomas, principal investigator on the study. Published in Contemporary Economic Policy, it looks at how a rent control policy in Minneapolis, Minnesota helped to increase access to rental housing to those who had long been excluded from the rental market.
Minneapolis recently enacted a comprehensive new policy. This law removes landlords’ ability to screen tenants based on their background checks, eviction history and credit scores from potential rental applications. The intent was to encourage more inclusive practices for people with criminal records, bad credit, or low income. The original intent of these actions was to promote debate on the effectiveness of such measures to ensure equitable housing access.
The Policy’s Implementation and Intent
The Minneapolis renter protection policy sought to remove obstacles that have historically blocked many from obtaining rental housing. Through the use of an equity lens, the city wanted to make a fairer application process for all. Second, they limited the criteria landlords could use when vetting applicants.
Following the policy’s implementation, researchers noted a significant decline in rental advertisements that mandated specific credit scores or outright banned applicants with criminal backgrounds. This shift was an early indication of the policy’s success. It expanded access for Americans who had been denied housing because of their credit or criminal record.
Unintended Consequences of Reduced Information
Despite these goals, implementation of policy resulted in criticism and unintended consequences. This led many landlords to turn to stereotypes as a crutch when evaluating potential tenants. They soon found themselves with inadequate data to make these individual evaluations. This reliance on outdated stereotypes led to a disproportionate rise in discrimination against Somali American and African American renters.
The research highlighted a notable difference in discrimination levels between Minneapolis and its “twin city,” St. Paul, which did not adopt similar renter protection measures. In fact, once the policy was enacted, discrimination against minority groups skyrocketed in Minneapolis. Given the adverse consequences associated with this disturbing trend, these positive changes may be lost in the shuffle.
Analyzing the Broader Impact
These findings indicate that the policy created fewer barriers for historically marginalized communities. It opened an entirely new can of worms for them. People who were previously discriminated against due to their credit status or eviction record now increasingly experience racial and ethnic discrimination. This change points to the insidiousness of discrimination in our society today.
As state and federal policymakers take action to protect renters from the severe consequences of eviction, it is critical that the unintended consequences of these protections be managed. Balancing inclusivity with fairness requires continuous evaluation and adjustment of policies to ensure they serve their intended purpose without fostering new forms of discrimination.
