Definition
Blockbusting is a manipulative strategy used by some real estate agents historically, particularly prominent in the mid-20th century, aimed at disturbing the ethnic or racial makeup of neighborhoods for financial gain. It involves convincing homeowners, often through fear tactics, to sell their properties at low prices due to the prospective change in neighborhood demographics, specifically the influx of minority groups. The agent then purchases these undervalued homes and resells them at a higher value, exploiting racial prejudices and fears.
Examples
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Scenario One: A sales agent orchestrates the sale of a home in a predominantly white neighborhood to a minority family. Following the sale, the agent conducts fear-mongering campaigns, suggesting to the remaining white homeowners that property values will plummet and the neighborhood will decline in safety and status. This manipulation pressures them to sell their homes cheaply.
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Scenario Two: An unscrupulous real estate broker spreads rumors about an influx of minority families into a specific suburban area. Many long-time residents, driven by fear and misinformation, list their homes at below-market prices. The broker buys these properties and resells them to minority buyers at inflated prices.
Frequently Asked Questions
Q: Is blockbusting illegal?
A: Yes, blockbusting is illegal under both the Fair Housing Act of 1968 and various state laws. The practice is considered discriminatory and manipulative, violating principles of equal housing.
Q: What time period was blockbusting most prevalent?
A: Blockbusting was most prevalent in the 1950s through the 1970s, particularly during the post-World War II suburban expansion in the United States.
Q: What impact does blockbusting have on communities?
A: Blockbusting causes significant disruption in community cohesion, promotes segregation, devalues property prices, and promotes distrust and discrimination among residents.
Q: What measures exist to prevent blockbusting?
A: The Fair Housing Act provides legal measures to enforce non-discriminatory practices in housing. Communities, legal agencies, and educational campaigns also work to prevent and address blockbusting tactics.
Related Terms with Definitions
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Redlining: The discriminatory practice by financial institutions of denying loans or insurance to people in certain neighborhoods based on racial or economic demographics.
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Gentrification: A process of urban development where lower-income neighborhoods are transformed by an influx of more affluent residents, often leading to displacement of the existing lower-income community.
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Fair Housing Act: A federal act in the United States created in 1968 aimed at eliminating discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, or sex.
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Steering: The practice by real estate agents of guiding prospective home buyers towards or away from certain neighborhoods based on racial characteristics.
Online Resources
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HUD.gov – Fair Housing: Enforcement Website: HUD.gov - Fair Housing
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National Fair Housing Alliance Website: NFHA
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American Bar Association – Property and Housing Discrimination Resources Website: American Bar Association - Housing Discrimination
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Library of Congress – Civil Rights History Project Website: LOC - Civil Rights History Project
References
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Jackson, Kenneth T. Crabgrass Frontier: The Suburbanization of the United States. Oxford University Press, 1985.
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Wyly, Elvin, et al. “Gentrification, Displacement, and Neighborhood Revitalization.” Journal of Urban Affairs, 2009.
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Massey, Douglas, and Nancy Denton. American Apartheid: Segregation and the Making of the Underclass. Harvard University Press, 1993.
Suggested Books for Further Studies
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Crabgrass Frontier: The Suburbanization of the United States by Kenneth T. Jackson
- This book explores the historical development of American suburbs and includes a detailed analysis of blockbusting and its impact on urban communities.
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American Apartheid: Segregation and the Making of the Underclass by Douglas Massey and Nancy Denton
- Massey and Denton delve into the history and mechanics of racial segregation in the United States, including discriminatory housing practices like blockbusting.
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The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein
- Rothstein’s book provides a comprehensive account of the legal and governmental policies that enforced segregation, impacting practices like blockbusting.
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Evicted: Poverty and Profit in the American City by Matthew Desmond
- Desmond’s examination of economic and social issues in urban America places housing instability and manipulative real estate practices in a broader context.
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The Fair Housing Act After Twenty Years edited by Robert G. Schwemm
- This collection of essays reviews the effectiveness and impact of the Fair Housing Act.
