Blockbusting is described as the profiteering real-estate practice of buying homes from white homeowners below market values, based on the implied threat of future devaluation during minority integration. Which of the following best reflects this description?

• A. True
• B. False
• C. Only for rental properties
• D. Not defined

Answer: (A)

Blockbusting is the practice of exploiting fears of racial change to prompt homeowners to sell at depressed prices. The description—profiteering by buying homes from white homeowners below market values based on the implied threat of future devaluation during minority integration—captures exactly how blockbusting works: brokers or agents capitalize on racial panic to acquire property cheaply, then convert it into profits by selling to minority buyers or investors. This is illegal under fair housing laws because it uses race to manipulate housing opportunities and prices, harms communities, and constitutes discrimination. It isn’t limited to rental properties and isn’t a legitimate or defined practice; the described behavior clearly fits blockbusting, so the statement is correct.