FBLA Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Blockbusting is the practice that involves creating fear among homeowners that their property values will decrease due to the influx of racially integrated communities. This tactic often encourages homeowners to sell their properties quickly and at lower prices. The practice is typically initiated by real estate agents or developers who exploit racial fears to profit from the subsequent buying and selling of homes.

By instilling anxiety about potential decreases in property value, blockbusting manipulates the market and induces panic selling, which can destabilize neighborhoods and contribute to segregation. This practice not only harms the homeowners involved but also exacerbates racial tensions and undermines the goal of integrated communities.

In contrast, steering refers to the practice of directing homebuyers toward or away from specific neighborhoods based on their race, while redlining involves denying or limiting financial services based on the racial or ethnic composition of a neighborhood. Discrimination encompasses more general biases and prejudicial behavior in housing practices, but the specific act of using fear about property values in the context of racial integration is best defined as blockbusting.