What practice involves encouraging people to sell their homes by suggesting a neighborhood's racial composition is changing?

What practice involves encouraging people to sell their homes by suggesting a neighborhood's racial composition is changing?

• A. Redlining
• B. Steering
• C. Blockbusting
• D. Gentrification

Answer: (C)

The practice being referred to is known as blockbusting. Blockbusting involves inducing homeowners to sell their properties by suggesting that the racial or ethnic composition of their neighborhood is changing. This often leads to panic selling, where homeowners fear that the value of their property will decrease due to an influx of different racial or ethnic groups. This tactic exploits racial fears and can change the demographics of a neighborhood rapidly, usually to the benefit of real estate agents and investors who buy low and sell high. In contrast, redlining refers to the discriminatory practice of denying services or charging higher prices to residents in specific neighborhoods, often based on their racial or ethnic background. Steering involves directing homebuyers towards or away from certain neighborhoods based on their race, which is another form of discrimination. Gentrification refers to the process of neighborhood change that results in the influx of more affluent residents and the displacement of the existing poorer residents, which is a broader societal trend rather than a practice targeting individuals to sell their homes. Understanding these terms helps clarify the motives and implications of such real estate practices.

The practice being referred to is known as blockbusting. Blockbusting involves inducing homeowners to sell their properties by suggesting that the racial or ethnic composition of their neighborhood is changing. This often leads to panic selling, where homeowners fear that the value of their property will decrease due to an influx of different racial or ethnic groups. This tactic exploits racial fears and can change the demographics of a neighborhood rapidly, usually to the benefit of real estate agents and investors who buy low and sell high.

In contrast, redlining refers to the discriminatory practice of denying services or charging higher prices to residents in specific neighborhoods, often based on their racial or ethnic background. Steering involves directing homebuyers towards or away from certain neighborhoods based on their race, which is another form of discrimination. Gentrification refers to the process of neighborhood change that results in the influx of more affluent residents and the displacement of the existing poorer residents, which is a broader societal trend rather than a practice targeting individuals to sell their homes. Understanding these terms helps clarify the motives and implications of such real estate practices.