Question

An example of blockbusting would be: Select one:

a. Refusal to sell or rent to prospects because of race
b. Refusal to lend within a designated area
c. Soliciting listings based on a fear of racial change in the area
d. Directing people to areas based on race

Answer 1

Blockbusting is a discriminatory real estate practice where agents play on racial fears to induce property sales at low prices to then sell at a markup to minority buyers. The correct answer to the question provided is 'c. Soliciting listings based on a fear of racial change in the area.'

Step-by-step explanation:

Blockbusting is a discriminatory real estate practice involving the exploitation of racial fears. In an example of blockbusting, real estate agents or speculators might spread the fear among white homeowners that racial minorities moving into the neighborhood would decrease property values. This fear is used to persuade white homeowners to sell their homes at a lower price, which the speculators would then sell at higher prices to minorities, often because of limited housing options available to them.

An example of blockbusting would be c. Soliciting listings based on a fear of racial change in the area. This practice was aimed at inducing 'white flight' and was part of a larger pattern of real estate and lending discrimination, including redlining. It exacerbated residential segregation by causing an exodus of white populations to suburbs, while minority families who bought into these neighborhoods often paid inflated prices.