What is 'blockbusting,' which both federal and state fair-housing laws prohibit?

Blockbusting (also called panic selling) is the illegal practice of persuading owners to sell or rent their property by playing on fears that members of a particular protected class — by race, national origin, or another protected characteristic — are moving into the area, so that the agent can profit from the turnover. It is prohibited under the federal Fair Housing Act and mirrored in state law. Related prohibited practices include steering and discriminatory advertising. Blockbusting harms communities and individuals and exploits prejudice. Licensees must never make representations about the changing makeup of a neighborhood to induce a sale, and the state portion tests recognition of this prohibited conduct.