What is the definition of blockbusting?

Blockbusting refers to the practice of inducing homeowners to sell their properties at undervalued prices by creating fear that members of a protected class are moving into the neighborhood. This tactic exploits societal anxieties concerning racial or ethnic integration in order to encourage homeowners to sell, often leading to a rapid turnover of property ownership and potentially contributing to the destabilization of communities.

This definition is grounded in fair housing laws, which prohibit such discriminatory practices aimed at influencing market dynamics through fear and misinformation. By understanding blockbusting, real estate professionals can recognize and avoid unethical practices that violate these laws, ensuring that they operate within a framework of compliance and fairness in the housing market. In contrast, the other options do not encapsulate the essence of blockbusting, as they pertain to different aspects of real estate or market conditions that do not specifically involve the manipulation of sales through fear related to racial or ethnic shifts.