What is the term for the practice of encouraging property owners to sell based on the fear that minority groups are moving into the neighborhood?

The practice described is known as blockbusting. This term refers to the unethical and illegal tactic used by real estate agents or developers to induce property owners to sell their homes at below-market prices by creating a sense of fear or panic regarding demographic changes in a neighborhood. Specifically, it exploits the fears of homeowners that property values will decrease if certain racial or ethnic groups move into the area. Blockbusting often involves manipulating the emotions of the current residents, leading to rapid turnover in the neighborhood’s population and changes in ownership, which can destabilize communities.

Understanding blockbusting is crucial as it underlines the broader issues of racial discrimination and the practices that can harm social cohesion. Conversely, redlining refers to the practice of denying services, such as mortgages, in specific geographic areas often based on the racial or ethnic composition of those areas. Steering involves directing potential homebuyers towards or away from certain neighborhoods based on their race or ethnicity, while discriminatory advertising includes advertisements that either explicitly or implicitly indicate that certain groups are unwelcome in particular housing. Each of these practices harms fair housing efforts and perpetuates inequality, but blockbusting specifically captures the fear-driven motivation for selling in the scenario provided.