Redfin Agrees to Share Data and Pay $9.25 Million to Settle Lawsuit


Redfin, a technology-powered real estate brokerage, has agreed to pay $9.25 million to settle a lawsuit alleging discriminatory practices in the way it displayed housing listings. The lawsuit, brought forward in October 2020 by the National Fair Housing Alliance and nine other fair housing organizations, claimed that Redfin’s minimum housing price policy discriminated against sellers and buyers of homes in minority neighborhoods.

According to the lawsuit, Redfin’s policy of not offering its full slate of services in areas where homes were below a certain price threshold had a disproportionate adverse effect on minority communities. By setting minimum prices for the homes it would service, Redfin was accused of providing fewer services in areas with predominantly non-white populations.

As part of the settlement, Redfin has committed to expanding its services to more lower-priced homes and paying $4 million toward building a program that ensures compliance with fair housing laws. Additional funds will be allocated to educational programs aimed at informing consumers about fair housing rights and promoting homeownership in historically underserved communities.

Redfin has concurred with the terms of the settlement without admitting any wrongdoing. In a statement released by the company, CEO Glenn Kelman emphasized Redfin’s commitment to making real estate better for everyone and acknowledged the need for industry-wide change.

The settlement also requires Redfin to amend its pricing algorithms and business practices to ensure that its services are provided equally across different communities. This decision is expected to have broader implications for the real estate industry with respect to ensuring non-discriminatory practices and accessibility for consumers of all backgrounds.

The agreement highlights the increasing scrutiny on tech-based companies in the real estate sector concerning fair housing laws. As these platforms become more integral in home buying and selling processes, they must address accusations of algorithmic bias that may inadvertently perpetuate patterns of discrimination.

With this agreement, Redfin takes a step forward in addressing these issues and sets an important precedent for other real estate brokerages utilizing technology in their operations. The settlement is expected not only to compensate those affected but also foster a more inclusive real estate market.


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