What illegal practice involves causing homeowners to sell by instilling fear of demographic changes?

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Blockbusting is the illegal practice of inducing homeowners to sell their properties by instilling fear regarding impending demographic changes in their neighborhoods. This typically involves suggesting that a change in the racial or ethnic composition of a community will lead to a decrease in property values or an increase in crime, which pressures current residents, often white homeowners, to sell at lower prices.

The practice exploits homeowners' fears and is a tactic used by real estate agents and developers to acquire properties at a low cost before reselling them at a profit after the neighborhood has changed. Blockbusting has been condemned because it perpetuates racial segregation and undermines community stability.

While other options like redlining, discrimination, and steering are relevant to issues of housing inequality and segregation, blockbusting specifically pertains to the tactic of forcing sales through fear tactics related to demographic shifts.

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