What is the term for the practice of persuading homeowners to sell their properties by implying that a particular racial group is moving into the neighborhood?

The correct term for the practice of persuading homeowners to sell their properties by implying that a particular racial group is moving into the neighborhood is "blockbusting." This unethical tactic often involves creating fear among homeowners that the value of their property will decrease due to demographic changes in the area. Blockbusting exploits racial prejudice and can lead to neighborhood destabilization as homeowners sell their homes at lower prices, often to investors who then sell to minority groups, thereby profiting from the manipulated market conditions.

Understanding blockbusting is essential within the context of fair housing laws, as this practice is illegal and vital to preventing discrimination in the real estate market. By recognizing blockbusting, real estate professionals can work to promote non-discriminatory practices and support community stability.