What is steering in real estate and why is it illegal?

Steering is the practice of directing homebuyers toward or away from certain neighborhoods based on their protected class characteristics, such as race, religion, or national origin. Examples include showing minority buyers homes only in predominantly minority neighborhoods, suggesting a family with children avoid a certain area, or recommending neighborhoods based on the buyer's ethnicity. Steering violates the Fair Housing Act even if the agent believes they are acting in the buyer's best interest.