What action describes blockbusting in real estate?

Blockbusting in real estate refers to the practice of inducing property owners to sell their homes at lower prices by instilling fear that a change in the neighborhood's demographics will lead to a decrease in property values. This often involves convincing homeowners that new residents, typically from a different racial or ethnic background, will negatively impact the quality and desirability of the neighborhood.

By portraying neighborhood deterioration as imminent, real estate agents or investors take advantage of these fears, prompting owners to sell quickly before supposed declines occur. This action exploits racial biases and creates a cycle of instability, affecting the community's dynamics.

Other responses do not capture the essence of blockbusting. Encouraging diverse communities and providing housing solutions are positive actions aimed at inclusivity and social advancement, which contrast sharply with the exploitative nature of blockbusting. Similarly, assisting in home renovations is related to property improvement rather than the manipulative tactics associated with blockbusting. Thus, the answer emphasizes the unethical practice that manipulates homeowners based on fear rather than promoting stability or integration within communities.