The practice refers to a discriminatory and unethical technique employed in the real estate industry. It involves inducing property owners to sell their homes, often at below-market values, due to fears that members of a minority group are moving into the neighborhood. An example includes real estate agents spreading rumors or exaggerating the potential for declining property values due to an influx of a specific racial or ethnic group.
This manipulative tactic historically resulted in destabilizing communities and perpetuating segregation. It capitalized on prejudice and fear to generate profit for real estate professionals, while simultaneously harming both the sellers and the potential buyers facing discriminatory barriers. Legal and ethical considerations deem this practice illegal due to its violation of fair housing laws, designed to prevent discrimination in housing transactions.