Blockbusting is defined as which practice?

• A. Inducing panic in selling for financial gain by insinuating that a minority group is moving into the area
• B. Steering buyers to certain neighborhoods
• C. Reducing rents for all
• D. Requiring disability access

Answer: (A)

Blockbusting is an illegal real estate practice that exploits fear of demographic change to push homeowners to sell at depressed prices. It works by insinuating that a minority group is moving into the neighborhood, prompting panic selling so the perpetrator can profit from the resulting drop in property values. This aligns with the described option: inducing panic in selling for financial gain by insinuating that a minority group is moving into the area.

Steering, the other option mentioned, is about directing buyers toward or away from certain neighborhoods based on preferences or to maintain certain demographics, which is a different discriminatory tactic. Reducing rents for all isn’t about leveraging fear to force sales, and requiring disability access relates to accessibility requirements, not manipulating neighborhood demographics.