Many years ago one of my colleagues decided to conduct an experiment in the Perth rental market. The purpose of the experiment was to examine the nature of racial discrimination in the market. So he commenced a ring around of the private rental properties advertised in the newspapers that weekend. His first enquiry was to ascertain whether the property was still available. On being assured that it was, he then asked if he could come and see the property. As soon as the process moved to determine a mutually acceptable time, he was asked his name. He responded with a name that was obviously commonly African, Muslim or Aboriginal only to be advised in a number of instances that, unbeknownst to the person he was speaking with, someone else in the office had already let the property. Yet the same property was still available at a later phone call under a name that was obviously Anglo-Celtic in nature. So clearly there was only one conclusion that could have been drawn as to the response from the agent.

Now we have confirmation of some of that rudimentary analysis conducted above. Heather MacDonald is Head of the School of Built Environment and Professor of Planning in the Faculty of Design, Architecture and Building, University of Sydney. She has undertaken some research in this area and comes to some very interesting conclusions. In the words of the study:

“To investigate this, we designed an experiment to compare the experience of Anglo, Indian and Muslim Middle Eastern “renters” in Sydney, to see if they were treated differently. We chose to look at these two ethnic minorities because other studies have reported they experience housing discrimination.

Each week between August and November 2013, we sampled properties advertised for rent across Sydney. We used paired testers (people of the same gender and age, but different ethnicities) as “mystery shoppers”. They phoned the listed agent and then, if possible, attended an inspection in person.

The testers completed a detailed questionnaire about what the agents told them. We completed a total of 537 phone-call tests and 369 in-person inspection tests.

The study covers only the enquiry and inspection stages of the housing search. We couldn’t test what happens once an application is actually submitted, because that would have involved lying. However, even at these early stages, we found some clear differences in how Anglo testers were treated compared to Muslim Middle Eastern or Indian testers.”

And what of the results from this study:

“What happened in the tests?

The chart below summarises the proportion of “tests” (properties that both testers visited) falling into one of three categories: the minority tester was favoured; both testers were treated identically; and the Anglo tester was favoured.

We tested which of these differences were statistically significant (not likely to be the result of random variation). The net difference between the numbers of Anglos and minorities favoured is shown in the chart labels, along with the statistical significance of the difference.

On some dimensions, minority testers were more likely to be favoured. Agents were more likely to tell the minority tester when the property would be available and that all adult occupants must sign a lease.

Agents were also more likely to take the minority testers’ details – although they were less likely to contact them after the inspection.

In a tight rental market, people from an Anglo background appear to have an advantage in finding the property they want.

But on most dimensions, particularly those that might meaningfully affect someone’s search for housing, agents favoured the Anglo tester. Agents were three to four times more likely to offer Anglo (but not minority) testers an individual appointment to inspect the property, to ask Anglo testers about their housing needs and to tell them of other available housing.

Agents also gave Anglo testers information about the application process that the minority partner was not given (such as the deadline for applications). And, although agents did this in only a small number of cases, they were more likely to contact Anglo compared to minority testers after the inspection.

All of these differences might make it far easier for Anglo renters to find the right property, at the right price and in the right location.”

And the conclusions that were drawn from the study?:

“What can we reasonably conclude?

Paired testing has its limitations. It is difficult to match individuals perfectly. Underlying characteristics (such as how confident someone is) might affect how they are treated.

We screened testers carefully and spent time training them. We also monitored the weekly survey responses to control quality.

One obvious limitation is that we looked at the experiences of only two ethnic minority groups, because we had limited funds. It’s likely that other ethnic and racial groups might have quite different experiences in the rental housing market. Our results also don’t say anything about other Australian cities.

Despite these limitations, we believe paired tests offer unique insight into how people of different ethnicities are treated in the market. Surveying agents or renters about their perceptions would have resulted in just that – a study of perceptions.

No-one can accurately compare their own experience of the world to someone else’s. So, relying only on complaints of discrimination is likely to underestimate substantially the actual incidence of differential treatment. We think our study offers a much more robust glimpse at housing inequity and has the potential to supplement anti-discrimination enforcement.”

See chart below:

Let me delve a little further into the results shown in the chart above:

  1. Minority groups were 13.3% points less likely to be offered an individual appointment
  2. There was less direct contact with the agent at inspection for minority groups
  3. Agents appear reluctant to give a minority community member their card
  4. Agents appear less interested in the housing needs of minority group members seeking rentals
  5. Interestingly where there was information sought about the applicant, agents were more likely to seek details if you were from a minority group
  6. And clearly there was less likelihood of an agent having an off script discussion with a minority community member than they were an “Anglo”

This fits very much in that space of “casual racism” which Human Rights Commissioner, Tim Soutphommasane and others have written about extensively. We stereotype the minority groups and interact with them on the basis of this stereotype. See here: and here:

It would appear that the Office of Multicultural Interests would be best advised to undertake some of their training with the good folk at REIWA as a starting point.