law
blockbusting
Blockbusting is the illegal practice of persuading owners to sell or rent by claiming that people of a particular race, religion, national origin, or other protected class are moving into the neighborhood, implying that values or safety will decline. It is also called panic selling or panic peddling. Blockbusting is prohibited by the federal Fair Housing Act whether or not the agent profits from the resulting sales.
- Exam tip
- Blockbusting targets sellers with fear about who is moving in; steering targets buyers by guiding them toward or away from areas. Know which side each affects.
- Example
- An agent mails flyers warning owners to "sell now before the neighborhood changes," referring to a minority family moving in, which is blockbusting.
Related terms & state variants
Sources
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Last verified: 2026-10-23