134,569 New Listings - February 2010 - Last update February 8, 2010 6:15 AM ESTSurvey Finds the Negative Impact of Foreclosures on Neighbourhoods
A survey has noted the negative impact of foreclosures on neighbourhoods – covering many facets of life. It is wrong to think that foreclosures have affected only the owners and tenants. Foreclosures, especially when these are concentrated in pockets, have affected entire localities not only economically but also mentally. Mustel Group, a group involved in market research (sponsored by BasicGov) surveyed 150 individuals – mayors, managers and officers of the code enforcement departments.
Nearly 80% said that the housing crisis had led to a spike in complaints being lodged by the citizens. The most frequent of these related to unkempt gardens (87%), damaged property blight (61%) and dumping of garbage (47%). 88% felt there was no need of increasing staff to manage the problem and 60% were ignorant about who should be responsible for the upkeep of the estates.
The gravest impact is the psychological damage being done to the people. It is a repeat of what happened in the past. Previous studies have shown that a locality hosting many foreclosures result in the economic hardship of all the people in the community. Business suffers apart from reduction in property value. A study carried on in 2006 by Fannie Mae indicated that within the radius of one eighth of a mile of a single foreclosure property value went down by 0.9%. Another survey taken in Chicago estimated that one foreclosure brought down the value of other neighbouring properties by $1,870 each.
Other consequences are far more dangerous and grim. Foreclosures attract anti-social elements like vandals, squatters, drug peddlers and prostitutes. It becomes a haven for criminals. They change the complexion of the entire neighbourhood that takes on an abandoned disheveled appearance. This causes despair among the normal law abiding citizens that have been left behind.
Patchwork Nation Project calculates the quality of life in many counties across the country. In a PBS broadcast it said, “Foreclosures are bad … when you start seeing homes going for sale on your street, or foreclosures, or houses being foreclosed on, it really affects psychologically, the economy of the area. People stop spending money – that has trickle effects that go into unemployment.”
The local municipalities are adopting many measures to tackle the blight of foreclosures as the number of complaints increase. Priority has been given to working in tandem with those who manage the units, by improving ties with other sectors and by making use of the Internet to make code enforcement procedures more efficient.
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