People of color who did not use a multiple listing service (MLS) saw their homes sell for an average of 3.2% less than MLS-listed homes over the past two years, according to a report from Zillow. That compares to an average of 1.2% less in majority white neighborhoods.

The Zillow study found that ZIP codes where a majority of heads of household are Black, Hispanic, Asian American, Pacific Islander or Native American lost $9,850 per non-MLS listing compared to about $3,700 per home in areas where most household heads are white.

“The data is clear that selling off the MLS costs home sellers in communities of color thousands of dollars in lost value,” Orphe Divounguy, a senior economist at Zillow, said in a statement. “These off-market listings not only harm sellers, but they limit exposure to potential buyers, possibly deepening inequities that have long existed in real estate.”

Overall, home sellers who chose not to use an MLS left more than $1 billion on the table based on lower closing prices in 2023 and 2024, according to Zillow.