Joe, a real estate agent, shows homes to a couple seeking a neighborhood with many East Africans nearby. What does his action constitute?

The scenario describes Joe, the real estate agent, showing homes to a couple specifically because they are interested in a neighborhood with many East Africans nearby. This behavior relates directly to the concept of steering, which involves directing prospective homebuyers towards or away from certain neighborhoods based on their race or ethnicity.

By focusing on the presence of a particular ethnic group, Joe is engaging in steering, which is considered discriminatory and is prohibited under fair housing laws. Steering creates a segregation effect in housing by influencing where individuals choose to live based on their race or ethnicity, rather than allowing them to select any neighborhood according to their own personal preferences and choices.

The confusion with racial tipping arises from its reference to changing demographics in neighborhoods, but in this case, Joe's action of directing the couple towards a specific ethnic community is more aligned with steering. Therefore, recognizing that Joe’s actions constitute steering clarifies the nature of discriminatory practices in real estate transactions.