Accordingly, no African American people managed to move to
Palo Alto until 1954, when a white man “sold his house to a black family” in East Palo Alto. Soon, an opportunistic real estate agent started “
blockbusting”: first, he and his colleagues planted fears about a “
Negro invasion”; then, they started buying white people’s houses for “discounted prices”; and finally, they put out newspaper ads targeting “Colored Buyers!” who ultimately “purchased the homes at inflated prices.” State regulators decided this practice did not count as “unethical.” They also did not object when the
FHA, private insurance companies, and prominent banks stopped insuring mortgages to
white families seeking to live anywhere that African American people also lived.