Final answer:
The illegal conduct described is known as blockbusting, a practice where real estate agents coerce homeowners to sell their homes under the false pretense that property values will fall due to minority families moving into the area.
Step-by-step explanation:
The illegal conduct described in the question is known as blockbusting. This practice involves real estate agents and speculators who exploit racial prejudices and fears by suggesting to homeowners that the arrival of minority families into their neighborhood will decrease property values.
This tactic is used to coerce homeowners into selling their property at a low price, which the speculators can then sell to minority families at a marked-up price, taking advantage of the limited housing options available to these families.
Blockbusting was a common practice in the past, particularly in the Industrial Midwest cities. It often led to a phenomenon called white flight, where white homeowners would rapidly sell their properties and move away from diverse inner-city neighborhoods to homogeneous suburbs, thus segregating the urban landscape.The illegal conduct described in the question is known as blockbusting.
Blockbusting is a practice where real estate agents or speculators exploit racial fears, often by announcing the sale of a home in a predominantly white neighborhood to a minority family.
The goal is to induce panic among white homeowners, causing them to sell their properties at below market value. The speculators then sell these homes at a higher price to minority families who have limited housing options.