What does blockbusting involve in real estate?

Blockbusting is a controversial and illegal practice in real estate where agents or developers persuade property owners to sell their homes by instilling fear regarding changing demographics in their neighborhoods. The tactic often involves suggesting that an influx of a particular racial or ethnic group will lead to declining property values or a change in the community's character. This fear is exploited to encourage homeowners to sell their properties rapidly, often at lower prices, capitalizing on the sellers’ anxiety.

Understanding blockbusting is essential in promoting ethical practices in real estate. It stands in stark contrast to fair housing principles, which emphasize the importance of all individuals having equal opportunities in housing regardless of background. Recognizing the implications of blockbusting helps real estate professionals navigate their responsibilities towards clients and the community at large.