What term describes the illegal act of causing homeowners to sell their properties by instilling fear about members of a protected class moving into the area?

Blockbusting is the term that accurately describes the illegal practice of inducing homeowners to sell their properties by instilling fear about the presence or potential arrival of members of a protected class in the neighborhood. This tactic exploits racial and social prejudices, leading homeowners to believe that the value of their property will diminish if certain demographic changes occur. Blockbusting has historically been used to create panic in white homeowners, prompting them to sell at lower prices, which the perpetrators then turn around and sell to members of the targeted group at a profit, often at an inflated price. This practice contributes to the perpetuation of segregation and discrimination.

In contrast, redlining refers to the discriminatory practice of denying services, such as mortgages or insurance, to residents of certain areas based on their racial or ethnic composition. Steering involves real estate agents guiding prospective buyers towards or away from certain neighborhoods based on their race or other protected characteristics. Gentrification describes the process where an urban area undergoes transformation due to an influx of higher-income residents, leading to displacement of lower-income residents, but this is not inherently illegal like blockbusting is.