What illegal act involves causing homeowners to sell their homes by instilling fear regarding a protected class moving into the area?

Blockbusting is the practice of persuading homeowners to sell their properties at reduced prices by instilling fear that members of a protected class, such as racial or ethnic minorities, are moving into the neighborhood. This exploitation of prejudice leads to a drastic change in the neighborhood's demographics, as the homeowners are pressured into selling quickly to avoid perceived declines in property value or changes in community dynamics.

Blockbusting often results in housing instability and contributes to the segregation of communities, making it a significant issue in real estate and urban development. This practice is illegal as it violates fair housing laws designed to protect individuals from discriminatory practices based on race, color, religion, sex, national origin, familial status, or disability.

In contrast, steering refers to the practice of guiding prospective homebuyers toward or away from certain neighborhoods based on their protected class status, while redlining involves the systemic denial of services based on racial or ethnic composition of neighborhoods. Discrimination is a broader term that encompasses any unfair treatment based on protected characteristics without specifying the mechanisms like blockbusting that are used to enact that discrimination.