Landlords and realtors occasionally are identified as causal agents in the creat

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Landlords and realtors occasionally are identified as causal agents in the
creat

Landlords and realtors occasionally are identified as causal agents in the
creation or maintenance of segregated neighborhoods. The existence of racial/ethnic
separation at local scales, however, is no sure proof of illegal discriminatory acts or
intentions by housing market agents. Other factors can and do produce racial/ethnic
separation within neighborhoods. Applied demographic analysis can play a part in
clarifying what constitutes discrimination and in evaluating the statistical data used
to screen for unlawful acts of discrimination within local housing markets. We
report a study of tenancy and tenancy turnover in a group of apartment buildings
located in a densely settled and ethnically diverse neighborhood in Los Angeles.
Turnover in these buildings altered the ethnic mix of tenants, increasing the Asian
proportion and decreasing the Hispanic proportion. We trace this change to two
market processes that differentiate tenants economically and by differing preferences for luxurious housing: (1) an upgrading of housing stock, which repositioned
certain rental units at a higher price point; and (2) the market response to newlyavailable luxury units. These processes promote ethnically homogeneous apartmentbuilding ‘‘neighborhoods’’ within an otherwise unsegregated ethnically diverse area.

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