Residential mortgage foreclosure and neighborhood change

An Analysis of the Relationship Between Housing Foreclosures, Lending Practices, and Neighborhood Ecology: Evidence from a Distressed County

“…Some researchers have hypothesized that neighborhoods with many vacant properties are also more likely to experience foreclosures, cre- ating a vicious circle in that foreclosures so often lead to vacancies. Baxter and Lauria (2000) did not find a direct relationship between foreclosures and vacancy rates, but they did find that there were some indirect effects. We likewise did not witness any linear relationship between the two variables; neighborhoods that experienced a rise in vacancies were not any more or less likely to see greater foreclosure activity.…”

Recipes for neighborhood development: A machine learning approach toward understanding the impact of mixing in neighborhoods

“…Given the consistent evidence that neighborhoods with higher levels of racial/ethnic heterogeneity have higher levels of crime (Hipp 2007;Roncek and Maier 1991;Rountree and Warner 1999;Sampson and Groves 1989), this provides additional evidence that such neighborhoods may not always exhibit economic vibrancy as expected. Indeed, studies have found that racial change is related to decreasing household income (Baxter and Lauria 2000). A recent investigation of the 100 largest US metropolitan areas by Jun (2016) also reported a strong negative association between the share of non-White population and the change in neighborhood per capita income.…”

Neighborhood effects of concentrated mortgage foreclosures

“…For instance, the higher the housing density surrounding foreclosed properties, the smaller the geographic area that is likely to be affected. (Lauria 1998;Lauria 1999 and2000) find that foreclosures accelerated racial transition in New Orleans by depressing housing prices and creating opportunities for lower-income black households to move into formerly white-occupied homes. They also find that higher foreclosure rates were associated with higher vacancy rates and lower proportions of owner-occupied housing.…”