What can be a consequence of blockbusting?

Prepare for the Metro Brokers Exam with flashcards and multiple choice questions. Each question is accompanied by hints and explanations. Get ready for your certification!

Blockbusting refers to a practice where real estate agents manipulate homeowners into selling their properties at lower prices by instilling fear about the changing demographics of a neighborhood. This could involve suggesting that an influx of minority residents is on the way and that it would lead to a decline in property values.

As a direct consequence of blockbusting, neighborhoods can see a decrease in property values. This occurs because when properties are sold under duress or fear, it can create a perception that the area is undesirable, prompting a further decline in property values. This downward spiral can affect the broader community as it may lead to disinvestment and a lack of maintenance in those neighborhoods.

While other choices may seem plausible in different contexts, they do not directly align with the core outcome of blockbusting practices. Increased community diversity might occur as a result of demographic changes, but this isn't an inherent consequence of blockbusting itself; rather, it might reshape community dynamics. A reduction in housing demand and maintenance of existing property values are not typical outcomes, as blockbusting generally leads to decreased demand and falling property prices rather than stability.

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