Story at a glance
- A new report from online real estate marketplace Zillow found that renters of color are more likely to pay security deposits than white renters.
- Zillow also found that renters of color were more likely to pay higher security deposits and higher rental application fees.
- Black and Latino renters are also submitting more rental applications than White or Asian renters, the report found.
Renters of color on average submit more applications, pay more in application fees and typically pay a higher security deposit than their white counterparts, a new report from online real estate marketplace Zillow.
Rents have gone up by 17 percent since last February, according to a report from Realtor.com, more than any year on record, causing some to look for more affordable homes.
Roughly 2 out of every 5 renters who have moved in the past year reported doing so to find a less expensive home, according to Manny Garcia, a population scientist at Zillow.
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“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,’ said Garcia. “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.”
The report, released by Zillow on Wednesday, is composed of findings from a national survey of more than 2,000 renters who moved in the past year.
Zillow found that 9 out of 10 renters last year had to pay a security deposit, with the median deposit coming in at $700. Renters of color were more likely to pay a security deposit than white renters.
About 93 percent of renters of color had to pay a security deposit last year, while 85 percent of white renters had to, according to the report.
In addition, renters of color had put up more money for security deposits than white renters. Among those who paid a deposit, renters of color typically paid $750 compared to $600 for white renters.
Asian American and Pacific Islanders paid the highest median security deport at $1,000, according to the report.
On top of more expensive and more frequent security deposits, renters of color were more likely to submit multiple rental applications and pay higher rental application fees than white renters, Zillow found.
Last year, 61 percent of all renters submitted two or more applications, an 11 percent increase from 2019. White and Asian American and Pacific Islander renters typically submitted two applications last year while Black and Latino renters submitted three.
Zillow found that the media rental application fee was $50 last year and white renters normally paid around $50 per application. However, Black renters typically paid $65 per rental application, Latinos $80 and Asian American and Pacific Islander renters paid $100 per application.
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