In the wake of the housing crisis there is growing concern that increased mortgage foreclosures may lead to physical deterioration of buildings and increased vacancy rates in neighborhoods, undermining neighborhood social controls, and causing increases in local crime. While some recent research suggests that increased mortgage foreclosures in micro-neighborhoods cause modest increases in crime (Ellen, Lacoe, and Sharygin, 2013; Cui, 2010), this paper considers whether foreclosures lead to increased crime on a block, as well as the mechanisms through which foreclosures affect neighborhood crime. To shed light on mechanisms, we investigate whether and how foreclosures shift the location and type of criminal activity by changing the relative attractiveness to potential offenders of one location versus another. For instance, the presence of a vacant, foreclosed building may make it more likely that a drug dealer will sell drugs in a building rather than on the street. As a result, crime occurring inside residences (and in vacant buildings in particular) and on the street may increase by different magnitudes. In addition, we consider whether foreclosures affect resident reports of disorder. Using richly detailed foreclosure, 311, and crime data geo-coded to the blockface (a street segment in-between the two closest cross-streets), we estimate the impact of foreclosures on the location of crime within blockfaces. This research focuses on Chicago, Illinois. Like many areas of the country, housing prices in Chicago reached a peak in 2006, and declined through 2011. In September 2011, 8.7 percent of the mortgages in the Chicago metropolitan area were in foreclosure, giving Chicago the 11th highest foreclosure rate among the 100 largest metropolitan areas in the country. Recent media reports claim that foreclosed and abandoned buildings in Chicago attract criminal activity including gang activity, drug use, and burglaries, in addition to graffiti, and theft of copper pipes and radiators (Knight and O’Shea, 2011). This study takes an empirical look at how foreclosures have changed patterns of crime in Chicago.
High Stakes in the Classroom, High Stakes on the Street: The Effects of Community Violence on Students’ Standardized Test Performance.
This paper examines the effect of exposure to violent crime on students’ standardized test performance among a sample of students in New York City public schools. To identify the effect of exposure to community violence on children’s test scores, we compare students exposed to an incident of violent crime on their own blockface in the week prior to the exam to students exposed in the week after the exam. The results show that such exposure to violent crime reduces performance on English Language Arts assessments, and no effect on Math scores. The effect of exposure to violent crime is most pronounced among African Americans, and reduces the passing rates of black students by approximately 3 percentage points.
Foreclosures affect not only individual homeowners, but also the crime levels of the surrounding neighborhood. This study found that neighborhoods with concentrated foreclosures see an uptick in crime for each foreclosure notice issued. These effects are pronounced in hardest hit neighborhoods; that is, those with concentrated foreclosures. The report suggests that policing and community stabilizing efforts should prioritize areas with concentrated foreclosures, especially those where crime rates are already moderate to high.
The mortgage foreclosure crisis has generated increasing concerns about the effects of foreclosed properties on their surrounding neighborhoods, and on criminal activity in particular. Using a unique dataset of point-specific longitudinal crime and foreclosure data from New York City, this paper explores whether foreclosed properties affect criminal activity on the surrounding blockface – an individual street segment including properties on both sides of the street. The researchers report that foreclosures on a blockface lead to additional violent crimes and public order crimes, and these effects are largest when foreclosure activity is measured by the number of bank-owned properties on a blockface.