What illegal practice involves misleading prospective owners about property values influenced by race?

Blockbusting is the practice of persuading property owners to sell their homes at reduced prices by instilling fear about demographic changes in their neighborhoods, often related to race. This tactic exploits the racially motivated fears of potential sellers, leading them to believe that property values will decline if minority groups move into the area. Misleading information regarding property values and the changing racial makeup of neighborhoods is a central aspect of blockbusting.

The consequences of such practices are significant, contributing to segregation and racial discrimination in housing. In jurisdictions like South Carolina, where historical issues of racism continue to affect housing markets, blockbusting is illegal and considered a violation of fair housing laws. Understanding this practice is essential as it reflects the broader context of racial dynamics in real estate and property management.

Other choices, while related to discrimination in housing, do not focus specifically on the misleading of prospective homeowners about property values influenced by racial demographics, which is why they do not accurately define the illegal practice in the question.