Discriminatory Marketing of Racially Mixed Neighborhoods in Memphis

ABSTRACT:

This exploratory research probes the advertising practices in free real estate booklets distributed at retail outlets. Specifically, it analyzes the advertising of the five largest real estate companies operating in Memphis, Tennessee, as represented in the Real Estate News booklet during 1984–1986. Multiple regression analysis reveals that, compared to real estate areas having less than 5% black population, areas with 30–49.9% black population had: (1)a 90% lower rate of ads where the real estate company itself was marketed, (2) a 92% lower rate of school district notations in ads, and (3)a 42% lower rate of ads where a favorable adjective described the area. The authors conclude that such advertising practices render racially mixed areas less visible to white homeseekers, with grave economic and social consequences.