What unethical practice involves telling homeowners that property values will decline due to changing racial makeup?

Blockbusting is the unethical practice where real estate agents or property owners instigate fear in homeowners, particularly by suggesting that the racial or ethnic makeup of a neighborhood is changing. This suggestion often leads homeowners to believe their property values will decrease as minority groups move in, prompting them to sell their homes quickly and often at lower prices. The practice capitalizes on racial prejudices and fears, leveraging these feelings to create a profit for the agents involved by reselling those properties to incoming populations at a higher price.

Redlining, on the other hand, refers to the discriminatory practice of denying services or charging higher rates based on the racial or ethnic demographics of certain neighborhoods, rather than an active encouragement to sell. Steering involves directing home seekers towards or away from particular neighborhoods based on their race or ethnicity, while prospecting generally refers to the process of searching for potential clients or leads in real estate and does not carry the same ethical implications.