Real estate agent response to Hispanic/Latino clients: Homophily, local demographic, and regional differences

Abstract We conduct a large‐scale correspondence experiment across 11 US states to assess differential treatment of Hispanic/Latino clients by real estate agents. The experiment covers an area with a wide range of underlying Hispanic/Latino population and a subject pool of agents that is ethnically diverse. We find that agents respond to White clients at an 8.43% higher rate than they do to Hispanic/Latino clients, a difference that is statistically meaningful at the one‐percent level. We find strong evidence of homophily—Hispanic/Latino agents and White agents are more likely to respond to clients that match their own ethnicity. Differential treatment also varies by geography and the underlying ethnic composition of the areas in our sample.