Which practice is considered "blockbusting"?

Blockbusting is a practice that involves creating fear among homeowners about the changing demographics of their neighborhood, often with the intention of prompting them to sell their homes at lower prices. The correct choice identifies this practice accurately. It describes the act of inducing property owners to sell by suggesting that members of a protected class—such as individuals of a different race, religion, or ethnicity—are moving into the area. This tactic is not only unethical but also illegal under the Fair Housing Act, which protects individuals from discrimination in housing. By instilling fear about property values declining due to demographic changes, brokers can exploit homeowners’ fears for profit.

The other options do not fit the definition of blockbusting. For example, recommending repairs to a home or encouraging home improvements are standard practices aimed at enhancing property value, rather than manipulating the owner's selling decision through fear. Advertising properties in a local newspaper is simply a common marketing approach and does not involve the misuse of demographic changes to influence selling behavior. Therefore, the choice specifically mentioning the suggestion of a protected class moving in is uniquely aligned with the concept of blockbusting.