Which one of the following is an example of "blockbusting"?

Prepare for the Illinois Residential Leasing Agent Test. Use our quiz to practice with flashcards and multiple choice questions. Each question provides hints and explanations. Ace your exam!

Blockbusting refers to the practice of encouraging homeowners to sell their properties at lower prices by instilling fear that a particular demographic group is moving into the neighborhood, which is likely to depress property values. When a leasing agent or real estate professional informs prospective buyers or renters about the ethnic makeup of a community, it can create an atmosphere of fear or panic about property values or safety, prompting individuals to make decisions based on race or ethnicity rather than the merits of the property itself. This is unethical and illegal under the Fair Housing Act.

The other options involve practices that, while they could raise ethical concerns in their own right, do not pertain directly to the manipulation of community demographics to spur sales or leasing by instilling fear about property values or neighborhood stability. They focus more on tenant qualifications or property specifications, rather than the intent to influence market behavior through demographic information.

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