The Use of Security Deposits as a Residential Sorting Mechanism: A Computational Text Analysis of Craigslist Rental Listings
Remy Stewart1, Christian Hess1, Ian Kennedy2, Kyle Crowder2
1Cornell University, 2University of Washington

As more of the United States’ growing population of renters conduct housing searches through digital marketplaces such as Craigslist and Zillow, scholarship on residential stratification has turned to investigating how online mediums reinforce preexisting neighborhood sorting by race, ethnicity, and socioeconomic characteristics. This work focuses on the use of security deposits requirements as a means in which landlords can intentionally attract or disincentivize prospective renters within a given neighborhood. We investigate the prevalence of mentioned security deposits by relevant neighborhood characteristics through our dataset of over 1.8 million Craigslist rental advertisements across US metropolitan housing markets. Our preliminary results indicate the dual importance of both majority neighborhood racial and ethnic composition as well as socioeconomic standing towards the intentional specification of a security deposit requirement as particularly applied towards communities of color.