Do Home Foreclosures Affect Some Neighborhoods More than Others?

house-for-sale-3-1150734-mAccording to a December 2010 report from the United States Bureau of Labor Statistics’ Monthly Labor Review report, the U.S. housing bubble peaked in 2006 and burst in 2008. Residential-construction-employment fell to levels lower than those in 1993 and foreclosure signs quickly became a common sight in neighborhoods across the country. But were some neighborhoods affected more than others? Why? This is what authors Keith Ihlanfeldt and Tom Mayock explored in their article “The Variance in Foreclosure Spillovers across Neighborhood Types” from Public Finance Review.

The abstract:

The estimation of foreclosure spillover effects has been the subject of a number of studies PFR_72ppiRGB_powerpointfollowing the most recent housing market crash. An important issue largely overlooked by these studies is the extent to which these spillovers vary across neighborhoods. In this article, we use data from the South Florida metropolitan area to study the variance in these foreclosure spillovers across neighborhoods with different income levels and racial concentrations. We find that the largest foreclosure spillovers occur in higher-income neighborhoods. In low-income, minority neighborhoods, we find no evidence of spillover effects. The results have important implications for local governments.

Clickhere to read “The Variance in Foreclosure Spillovers across Neighborhood Types” from Public Finance Review for free! Don’t forget to click here to sign up for e-alerts and keep up to date on all the latest news and research from Public Finance Review!

This entry was posted in Accounting, Change, Crisis Management, Cultural Research, Decision making, Diversity, Environmental and Social Issues, Ethics, Finance, Financial Crisis, Income, Labor Supply, Measurement, Pay, Politics, Relationships, Social Impact, Social Issues and tagged , , , by Cynthia Nalevanko, Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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