What is blockbusting?

Blockbusting refers to the unethical practice of inducing property owners to sell their homes at a lower price by creating fear regarding changes in neighborhood demographics, often based on false claims. This tactic typically involves suggesting that minority groups are moving into the area, which would purportedly lead to a decrease in property values.

The underlying motive for blockbusting is financial gain for the agent or investor; they buy properties at reduced prices and then resell them at a profit after the demographic shift has occurred. This practice is not only unethical but also illegal under fair housing laws, which aim to prevent discrimination and ensure equal housing opportunities for all individuals, regardless of race or background.

The other options describe different concepts that do not pertain to blockbusting. For example, renovating homes is simply a matter of home improvement, while refusing to sell property based on race is a violation of fair housing laws. Providing loans to all qualified buyers reflects equitable lending practices and does not relate to the coercive tactics associated with blockbusting.