What term describes the act of indicating that property values may decline due to the presence of certain demographic groups?

The act of indicating that property values may decline due to the presence of certain demographic groups is referred to as blockbusting. This practice involves real estate agents or property owners promoting the fear that a neighborhood will experience a decrease in property values due to the infiltration of particular demographic groups. This creates panic among current homeowners who may rush to sell their properties, often at reduced prices, leading to a cycle of manipulation in the housing market.

Blockbusting is an unethical and often illegal tactic that not only exploits racial or socio-economic fears but also harms the community by perpetuating segregation and economic instability. The intention behind blockbusting is to profit from the sale of properties during a time of distress for homeowners, which is why it is viewed negatively in the context of fair housing practices.

Understanding this concept is essential for real estate professionals, as it emphasizes the importance of ethical practices in housing and the detrimental effects that such manipulative tactics can have on individuals and communities.