Which practice involves manipulating housing markets by exploiting fears of demographic change?

Which practice involves manipulating housing markets by exploiting fears of demographic change?

• A. Annexation
• B. Blockbusting
• C. Boomburbs
• D. Megacity

Answer: (B)

Blockbusting involves manipulating housing markets by exploiting fears of demographic change. Real estate agents would whip up panic in a neighborhood by suggesting that an influx of minority residents will drastically lower property values, prompting white homeowners to sell quickly at distressed prices. They would then flip those properties to minority buyers at higher prices, often earning large commissions. This relies on social fears rather than market fundamentals and disrupts neighborhood stability, and it is illegal under fair housing laws. The other terms describe different urban phenomena—annexation is about cities expanding their boundaries, boomburbs are rapidly growing suburban cities, and megacities are extremely large urban areas—none of which entail the practice of using fear of demographic change to manipulate housing markets.

Blockbusting involves manipulating housing markets by exploiting fears of demographic change. Real estate agents would whip up panic in a neighborhood by suggesting that an influx of minority residents will drastically lower property values, prompting white homeowners to sell quickly at distressed prices. They would then flip those properties to minority buyers at higher prices, often earning large commissions. This relies on social fears rather than market fundamentals and disrupts neighborhood stability, and it is illegal under fair housing laws. The other terms describe different urban phenomena—annexation is about cities expanding their boundaries, boomburbs are rapidly growing suburban cities, and megacities are extremely large urban areas—none of which entail the practice of using fear of demographic change to manipulate housing markets.