Urban Studies and Planning Commons^™

Home Foreclosures And Neighborhood Crime Dynamics, Sonya Williams, George Galster, Nandita Verma

Urban Studies and Planning Faculty Research Publications

We advance scholarship related to home foreclosures and neighborhood crime by employing Granger causality tests and multilevel growth modeling with annual data from Chicago neighborhoods over the 1998-2009 period. We find that completed foreclosures temporally lead property crime and not vice versa. More completed foreclosures during a year both increase the level of property crime and slow its decline subsequently. This relationship is strongest in higher-income, predominantly renter-occupied neighborhoods, contrary to the conventional wisdom. We did not find unambiguous, uni-directional causation in the case of violent crime and when filed foreclosures were analyzed.