Illinois Leasing Agent Practice Exam

Which of the following is an example of blockbusting?

1. Showing apartments only in certain buildings

2. Limiting the number of children that can occupy a unit

3. Limiting the number of occupants per unit

4. Informing prospects of the ethnic makeup of the community

The correct answer is: Informing prospects of the ethnic makeup of the community

Blockbusting refers to the practice of persuading owners to sell their properties at low prices by creating fears of changes in the neighborhood, often related to race or ethnicity. By informing prospects about the ethnic makeup of a community, this practice aims to incite fear or prejudice, suggesting that changes may negatively affect property values or the community's character. This strategy often involves overstating or misrepresenting the impact of demographic shifts to encourage property turnover. In contrast, the other options pertain to different aspects of leasing or property management, such as rules regarding occupancy or showing preferences, which do not imply significant manipulation regarding neighborhood demographics. These practices do not utilize fear of demographic changes as a selling tactic, which is the hallmark of blockbusting. Thus, the correct choice clearly highlights an unethical practice tied to discrimination and manipulation concerning community characteristics.