The Impact of the Sense of Security from Crime on Residential Property Values in Brazilian Metropolitan Areas

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 1 Abstract * Using a hedonic residential rent model for Brazil's metropolitan areas calibrated with microdata from Brazil's annual household survey, this study estimates that increasing the sense of security in the home by one standard deviation would increase average home values by R$1,513 (US$757), or about US$13.6 billion if applied to all 18.0 million households in the study area. The principal components analysis of sense of security and crime victimization variables indicates that higher-income households feel more secure from crime in the home, even though theft and robbery victimization rise with household income and rent level. Higher levels of home protection measures by higher-income households partially explain this result. Terms of use: Documents inJEL classifications: C83, R23, R31

The Welfare Costs of Crime and Violence in Latin America and the Caribbean

“…In terms of intangible costs, Vetter, Beltrão, and Massena (2013) calibrate a hedonic model to study how much households are willing to pay to live in perceived safe areas. Similarly, using panel data, Ajzenman, Galiani, and Seira (2015) evaluate the impact of homicides on property values and test the theoretical model introduced in Chapter 2 to show that violence has a price-reducing effect.…”

Landscape Value in the Spanish Costa del Sol’s Real Estate Market: The Case of Marbella

“…Property prices are influenced by extrinsic and intrinsic factors, such as, e.g., maintenance state and quality of materials [2], comfort [3], safety [4][5][6], energy efficiency [7][8][9][10][11][12], social status of its owner [13] and the surroundings [14][15][16][17], environmental, historical or architectural amenities [18]. In the same way, real estate market is also conditioned by contextual socioeconomic factors [19,20] and the variation in the mode of real estate goods appreciation [21,22].…”

Police Violence and the Underreporting of Crime

“…Exploiting a natural experiment in Peru, Agüero () finds that instances of domestic violence against women in that country have produced a variety of negative short‐term health outcomes in children. A recent study based upon microdata in Brazilian cities estimates that increasing the sense of security of homeowners by one standard deviation (on a survey measure) would increase average home values by US$757, or by about US$13.6 billion total in their sample (Vetter, Beltrão, & Massena, ). A similar study conducted in Bogotá, Colombia, finds that households in the highest socioeconomic stratum are willing to pay up to 7% of their house values to avoid a one standard deviation increase in the homicide rate (Gaviria, Medina, Morales, & Núñez, ).…”