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Foreclosure-related vacancy rates

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  • Stephan D. Whitaker

Abstract

The national foreclosure crisis has caused there to be millions more vacancies in our housing stock than before. Vacant homes lower their community?s property values and quality of life. Neighbors and public officials know foreclosed homes sit empty for months, but precise measures of foreclosure-related vacancy are rare. Using data from Cuyahoga County, Ohio, I trace the rise and fall in the vacancy rates of homes during the 18 months following their foreclosure. Ominously, the data suggest that foreclosure may permanently scar some homes. Foreclosed homes still have higher vacancy rates than neighboring houses two to five years after a sheriff?s sale.

Suggested Citation

  • Stephan D. Whitaker, 2011. "Foreclosure-related vacancy rates," Economic Commentary, Federal Reserve Bank of Cleveland, issue July.
    • Handle: RePEc:fip:fedcec:y:2011:i:july26:n:2011-12
    DOI: 10.26509/frbc-ec-201112
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    References listed on IDEAS

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    1. Harding, John P. & Rosenblatt, Eric & Yao, Vincent W., 2009. "The contagion effect of foreclosed properties," Journal of Urban Economics, Elsevier, vol. 66(3), pages 164-178, November.
    2. John Y. Campbell & Stefano Giglio & Parag Pathak, 2011. "Forced Sales and House Prices," American Economic Review, American Economic Association, vol. 101(5), pages 2108-2131, August.
    3. Hartley, Daniel, 2014. "The effect of foreclosures on nearby housing prices: Supply or dis-amenity?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 108-117.
    4. Dan Immergluck & Geoff Smith, 2006. "The external costs of foreclosure: The impact of single‐family mortgage foreclosures on property values," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 57-79.
    5. Schuetz, Jenny & Been, Vicki & Ellen, Ingrid Gould, 2008. "Neighborhood effects of concentrated mortgage foreclosures," Journal of Housing Economics, Elsevier, vol. 17(4), pages 306-319, December.
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    Cited by:

    1. Larson, Matthew & Xu, Yanqing & Ouellet, Leah & Klahm, Charles F., 2019. "Exploring the impact of 9398 demolitions on neighborhood-level crime in Detroit, Michigan," Journal of Criminal Justice, Elsevier, vol. 60(C), pages 57-63.
    2. Ingrid Gould Ellen & Josiah Madar & Mary Weselcouch, 2015. "The Foreclosure Crisis and Community Development: Exploring REO Dynamics in Hard-Hit Neighborhoods," Housing Studies, Taylor & Francis Journals, vol. 30(4), pages 535-559, July.
    3. Thomas J. Fitzpatrick & Lisa Nelson & Francisca Richter & Stephan D. Whitaker, 2012. "The effect of local housing ordinances," Working Papers (Old Series) 12-40, Federal Reserve Bank of Cleveland.
    4. Thomas J. Fitzpatrick & Stephan D. Whitaker, 2012. "The impact of vacant, tax-delinquent, and foreclosed property on sales prices of neighboring homes," Working Papers (Old Series) 1123, Federal Reserve Bank of Cleveland.
    5. Whitaker, Stephan & Fitzpatrick IV, Thomas J., 2013. "Deconstructing distressed-property spillovers: The effects of vacant, tax-delinquent, and foreclosed properties in housing submarkets," Journal of Housing Economics, Elsevier, vol. 22(2), pages 79-91.

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    Keywords

    Foreclosure - Ohio;

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