Blockbusting
The illegal practice of inducing homeowners to sell their properties by claiming that minority groups are moving into the neighborhood.
Exam Context & Texas Nuance
Blockbusting
Blockbusting, also known as panic selling, is a discriminatory practice. Real estate agents would convince white homeowners to sell their homes at low prices by playing on racial fears, and then resell those properties to minority buyers at highly inflated rates.
Texas-Specific Nuance & Citation
Blockbusting is prohibited under both the federal Fair Housing Act and the Texas Fair Housing Act (Texas Property Code Chapter 301). Under TRELA, any license holder who engages in blockbusting is subject to immediate license suspension or revocation.
The Trap
Candidates sometimes struggle to distinguish blockbusting from steering. To keep them straight: blockbusting involves inducing panic selling among existing homeowners, whereas steering involves channeling or directing buyers to specific areas.
Worked Example
An agent in Fort Worth distributes flyers in a neighborhood stating, “A new group of minorities is moving into your subdivision. Sell your home now before property values crash.” This is a textbook example of blockbusting.