How foreclosed homes affect the rest of us

October 5, 2009 | By | Reply More

Arianna Huffington referred to the Brennan Center’s recent study in reminding us that 300,000 homes are foreclosed every month in the U.S. This is terrible news for the people who used to make those houses their homes. But the problem is bad for the rest of us too:

[A]n estimated 40 million homes are located next door to a foreclosed property. The value of these homes drops an average of $8,667 following a foreclosure. This translates into a total property value loss of $352 billion. And vacant properties take a heavy toll on already strapped local governments: an estimated $20,000 per foreclosure (California is estimated to have lost approximately $4 billion in tax revenue in 2008). And the negative impact of a foreclosed home can affect the entire community: a one percent increase in foreclosures translates into a 2.3 percent rise in violent crimes.

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Category: American Culture, Economy, Science

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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