Foreclosures Spark Crime, Report Says

February 28, 2013

As few as three foreclosures on a block can lead to more crime in a neighborhood, according to a report by the New York University’s Furman Center for Real Estate & Urban Policy. 

Researchers evaluated the impact of foreclosure filings and auctions in neighborhood blocks in New York. A foreclosure start can cause a 0.7 percent increase in overall crime and a 1.5 percent rise in violent crime in the area. The study also found that a foreclosure auction leads to a 1.3 percent increase in total crime and a 2.6 percent increase in violent crime. 

“Our findings show that multiple foreclosures on a single blockface lead to an increase in violent and public-order crime, particularly in areas that have moderate to high existing crime rates,” according to the report. “These findings warrant attention from government and community groups working in communities hard hit by the foreclosure crisis.”

Source: “Report: Foreclosures cause neighborhood crime,” HousingWire (Feb. 27, 2013)

Read More

Foreclosure Scams on the Rise