What is the concept of blockbusting?

The concept of blockbusting refers to the practice of using fear tactics and misinformation to convince homeowners to sell their properties, often by spreading rumors that members of a protected class (such as racial or ethnic minorities) are moving into the neighborhood. This technique exploits the fears of existing homeowners regarding property values and neighborhood changes.

By suggesting that the presence of these new residents will lead to a decline in property values or alter the character of the neighborhood, real estate agents or speculators encourage existing homeowners to sell quickly, sometimes at below market value. This creates an opportunity for the agents to purchase the properties and resell them at higher prices once the neighborhood transitions.

Understanding this concept is vital in recognizing the unethical practices within real estate that exploit racial tensions and economic fears, which have historically contributed to housing discrimination and segregation.