What does the term "blockbusting" refer to?

The term "blockbusting" refers to the practice of encouraging panic selling among homeowners, often by instilling fear that a particular demographic change in the neighborhood will lead to a decline in property values. This tactic exploits racial, ethnic, or socioeconomic fears to motivate homeowners to sell their properties quickly, often at lower prices, to real estate agents or investors.

This practice can lead to significant disruptions in communities as it often targets vulnerable populations and can exacerbate segregation and discrimination. Real estate agents or developers might use misinformation or fear-based tactics, promoting the idea that if certain groups move into the area, property values will decrease, prompting current residents to sell hastily. Understanding this term is essential in the context of fair housing laws, as blockbusting is considered an illegal and unethical practice within the real estate industry.