For over half a century, significant strides have been made to increase homeownership among minorities and marginalized communities in the United States. From the Fair Housing Act of 1968 to decades of HUD initiatives and nonprofit efforts, homeownership has been a critical pathway to wealth building. However, recent developments threaten to reverse this progress, particularly for marginalized communities.

The National Association of Realtors (NAR) recently settled a lawsuit challenging the traditional real estate commission structure, where sellers paid both their agent’s fee and the buyer’s agent’s fee. While intended to address antitrust concerns, this settlement introduces unintended consequences that disproportionately harm minority, low-income, and low-income homebuyers.

Previously, buyer agents were incentivized to assist clients from all backgrounds, as sellers covered their fees. Now, shifting this burden to buyers significantly increases upfront costs, making homeownership even more inaccessible for marginalized groups who often rely on down payment assistance. This change effectively doubles the financial barriers they face, turning homeownership into an unattainable goal for many.

Without buyer agents, marginalized buyers may be forced to engage directly with seller agents, exposing them to increased risks of discrimination. Sellers and their agents, now interacting directly with buyers, may use personal information—such as race, gender, religion, medical, or credit history—to favor certain buyers over others, reinforcing discriminatory practices that decades of fair housing efforts sought to eliminate.

Decades of systemic discrimination have limited homeownership opportunities for lower income households. FHA loans, often used by minority buyers, come with narrower margins for error. Without buyer agents to negotiate or guide them, these buyers face greater difficulty securing fair deals. The added burden of paying buyer agent fees upfront undermines the affordability of FHA loans.

Homeownership is one of the most effective ways to build generational wealth. Creating new financial barriers will widen economic disparities and slow progress for lower income families.

Direct seller-buyer interactions increase the likelihood of bias, as sellers may prioritize buyers based on personal preferences rather than objective qualifications. With buyers now responsible for agent fees, experienced agents may prioritize wealthier clients, creating a dual-tier system where marginalized buyers receive inferior representation—or none at all.

The primary beneficiaries of this lawsuit are corporations, large real estate firms, and tech-driven platforms that prioritize high-volume, low-service transactions. These entities stand to gain financially, while lower income, minorities, and first-time buyers bear the brunt of the changes.

This is a community issue. Lower homeownership rates among minorities weaken local economies, increase wealth inequality, and destabilize the housing market.

Congress has the power to level the playing field through federal legislation ensuring access to professional representation for all buyers. Requiring sellers to cover both buyer and seller agent fees would eliminate a significant barrier to entry for first-time homebuyers, particularly in historically disadvantaged communities. If legislation is not feasible, an alternative would require a substantial financial commitment—Congress would need to allocate billions annually to first-time homebuyer assistance programs to offset the inequities in the current structure.

States should establish platforms for reporting discrimination, provide educational resources on fair housing laws, and ensure accountability for discriminatory practices. Expanding literacy initiatives, housing workshops, pro bono services, and partnerships with real estate firms can help support underrepresented buyers.

Minorities, lower income, immigrants, and other underrepresented groups are vital contributors to our economy and communities. Ensuring their ability to achieve homeownership is essential not only for their progress but for the shared prosperity of all. Homeownership symbolizes opportunity and stability. We must safeguard this pathway to ensure the American Dream remains accessible for future generations.

Marc Saint Clair is a real estate broker specializing in helping first-time homebuyers, and novice investors.