What does blockbusting mean in FHA terms?

• A. Advertising to a specific demographic group.
• B. Inducing homeowners to sell by suggesting that a protected class is moving into the neighborhood.
• C. Building new homes in a block to attract buyers.
• D. Increasing property values by renovations.

Answer: (D)

Blockbusting is a discriminatory practice in FHA terms where a real estate professional tries to induce homeowners to sell by implying that members of a protected class are moving into the neighborhood. The tactic preys on fear that property values will drop or safety will be affected, prompting panic selling and helping to maintain segregation. This is illegal under the Fair Housing Act because it manipulates housing opportunities based on protected characteristics. The other ideas don’t fit because advertising to a specific demographic group is a targeted marketing idea, building new homes to attract buyers is legitimate development, and increasing property values by renovations involves improvements rather than discriminatory manipulation.