What practice involves inciting panic about changing demographics in a neighborhood?

Blockbusting involves inciting panic about changing demographics in a neighborhood to manipulate property values and encourage homeowners to sell their homes at a lower price. Real estate agents or developers often use this practice by suggesting that an influx of a particular demographic group will lead to a decline in property values, pressuring current homeowners to sell quickly out of fear. This tactic exploits the homeowners' fears and prejudices, leading to a rapid turnover of properties and often targeting vulnerable communities.

In contrast, redlining refers to the discriminatory practice of denying services, typically financial ones, to residents of certain areas based on racial or ethnic composition, rather than actively inciting fear. Steering involves directing prospective homebuyers towards or away from certain neighborhoods based on their race or ethnicity, rather than manipulating property values through fear. Discrimination is a broader term encompassing various unfair treatment practices based on characteristics such as race, gender, or religion, but does not specifically refer to the strategic instigation of panic regarding demographic changes, as blockbusting does. Thus, blockbusting is the correct terminology for the practice described in the question.