What is 'blockbusting' in fair housing law?

Blockbusting (also called panic selling) is a practice prohibited by the Fair Housing Act where someone — usually a real estate licensee or investor — induces property owners to sell by representing that property values will decline or the neighborhood will change because of incoming residents of a protected class. The induced sellers typically sell at below-market prices in panic; the licensee or investor then resells at higher prices to incoming residents. Historical context: blockbusting was common during the mid-20th century in rapidly changing urban neighborhoods, exploiting racial prejudices to manipulate markets. Examples: door-to-door solicitations or mailings warning of neighborhood 'change'; rumors and statements designed to create fear; targeting white homeowners with messages about Black or Latino families moving in; reverse blockbusting in some contexts. The Fair Housing Act prohibits blockbusting regardless of whether the representations are true or false. Penalties include HUD enforcement, civil damages, and license consequences. Modern variations include subtle forms of fear-based marketing and discrimination against gentrifying or stable areas.