A federal lawsuit filed this week by fair housing groups across Long Island alleges the online real estate marketplace, Redfin, engages in racial discrimination.
The lawsuit was filed Wednesday in federal court in Washington State.
A two-year investigation by the 10 housing groups found that Redfin offers its highest level of service in predominantly white neighborhoods across the country and limited service in Black and Brown communities.
The lawsuit says of Redfin’s listings of 6,000 homes in white zip codes on Long Island, 27 percent were offered services like discounted rates and perks. The 600 homes in Black and Brown zip codes had less than 1 percent offered that service.
Redfin says it offers premium service on its websites to homes priced above certain minimums, and follows federal housing law.
The legal challenge follows a Newsday investigation that found that real estate agents steer white customers to and customers of color away from white neighborhoods. New York approved measures to combat housing discrimination earlier this year.