"Blockbusting" has been illegal since the Fair Housing Act of 1968. ... Through blockbusting, brokers intentionally stoked fears of racial integration and declining property values in order to push white homeowners to sell at a loss.

What is blockbusting and why is it illegal?

First and foremost, blockbusting, also sometimes referred to as "panic selling," is a discriminatory and illegal real estate practice. It involves convincing property owners to sell their homes based on the assumption that a new neighbor will change the socio-economic makeup of the neighborhood.

Why is blockbusting bad?

Landlords in neighborhoods affected by blockbusting reportedly exploited renters by not investing in better living conditions for their new tenants. The resulting dip in housing standards lowered property values even more than white flight already had.