What term describes the practice of inducing a person to lease or purchase a property based on neighborhood demographics?

The correct term for the practice of inducing a person to lease or purchase a property based on neighborhood demographics is known as blockbusting. This practice involves real estate agents or developers convincing homeowners to sell their properties at a lower price by creating fear or anxiety related to changing demographics in a neighborhood. This might include suggesting that an influx of minority or lower-income residents will lead to a decline in property values, prompting current homeowners to sell prematurely. Subsequently, the properties are often resold to new buyers at a higher price.

Blockbusting is illegal under the Fair Housing Act because it exploits individual fears for profit and contributes to segregation in housing. It runs counter to the principle of fair housing rights and the aim to promote equality in real estate transactions. This differentiates it from other terms like redlining, which involves discriminatory practices in lending based on location and race, and steering, which refers to directing individuals towards or away from certain neighborhoods based on their race or ethnicity. Familiar status is not a commonly used term in the context described. Understanding these distinctions clarifies why blockbusting is the appropriate choice in the context of the question.