What does redlining refer to?

Redlining specifically refers to the practice of refusing to make loans or insurance available in certain geographic areas, particularly those predominantly inhabited by minority populations or low-income individuals. This discriminatory practice has its origins in the policies of the Home Owners' Loan Corporation (HOLC) during the 1930s, which used color-coded maps to indicate areas that were deemed risky for investment. Areas marked in red were typically considered undesirable, and this designation affected the ability of residents to secure mortgages and insurance, leading to systemic disinvestment in those neighborhoods.

By contrast, the other options describe different phenomena related to real estate but do not capture the essence of redlining. For example, blockbusting involves inducing homeowners to sell their properties under pressure, often to instigate racial turnover in a neighborhood, while controlling marketing strategies refers to how properties are promoted by agents and developers. Guiding buyers to specific neighborhoods often ties back to targeted marketing practices rather than discriminatory lending practices like redlining. Thus, the correct association of redlining is with the refusal to extend financial services and the consequent impact it has had on communities.