What is blockbusting and why is it illegal?

• A. Providing Services To All Groups Regardless Of Status
• B. Inducing Or Encouraging Owners To Sell By Exploiting Fear Of Demographic Changes In A Neighborhood; It’s Illegal
• C. Advertising Neutral Language
• D. Steering Buyers To Neighborhoods

Answer: (B)

Blockbusting is a discriminatory real estate tactic that uses fear of changing neighborhood demographics to prompt current homeowners to sell their properties. The idea is that people worry their property values will drop or crime will rise if a new, often minority, group moves into the area, so they sell quickly at lower prices. This manipulative tactic targets fears tied to protected characteristics and leads to racial or other discriminatory turnover, which violates the Fair Housing Act.

That’s why the described scenario—the practice of inducing or encouraging owners to sell by exploiting fear of demographic changes in a neighborhood—is illegal. It embodies panic selling and discrimination, undermining equal housing opportunities.

The other options describe different concepts. Providing services to all groups regardless of status reflects compliant fair housing practice. Advertising neutral language is just neutral marketing. Steering buyers to neighborhoods is another illegal practice, but it’s a separate tactic with its own rationale; blockbusting specifically centers on inducing sellers through fear of demographic change.